Kernel Holdings Under Pressure
Kernel Holdings, the world’s largest producer/exporter of sunflower oil, has seen volatile price action over recent sessions. The Ukrainian company has seen heavy selling in recent days as fears over a fresh military conflict between Russia and Ukraine continue to grow. The build up of Russian troops on the border with Ukraine this year has weighed heavily on investor sentiment and news this week that Russia has sent troops into two breakaway regions in eastern Ukraine has been met with grave concern. Given that Russia’s troops have bene sent in on peacekeeping duties and not an outright offensive, there are still hopes that political leaders can secure a de-escalation of the situation and avoid a war, particularly if a much-needed summit between Biden and Putin still goes ahead.
Away from geo-political drivers, Kernel is due to report Q4 earnings this week. The market is looking for revenues of 6.491 billion, which would mark an uptick from the prior quarter’s 5.354 billion result. However, if earnings miss, as they did last time, given the backdrop of geopolitical fears this would likely weigh on Kernel near-term.
Technical Views
KER
The breakdown through the long-term bull trend line has seen price trading down below key support at the 48.75 level, briefly, before rebounding. This is a major support zone for the stock and bulls need to defend this area to keep the medium-term focus on higher prices. Should price continue below there, however, 44.95 is the next downside marker to note.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.