Company Overview: Virgin Money UK PLC (ASX: VUK) provides banking products and services for consumers and small and medium-sized businesses under the Clydesdale Bank, Yorkshire Bank, and Virgin Money brands in the United Kingdom. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Resistance Levels, and Recommendations on this stock.
VUK’s Technical Analysis:
On July 18th, 2023, VUK's price experienced an upside breakout of a symmetrical triangle pattern, indicating the possibility of a positive trend. Additionally, the intersection of the two trend-following indicators, 21-period and 50-period SMAs, further supports a positive bias. Presently, the stock is trading above both the 21-period and 50-day SMAs, potentially serving as dynamic support levels for the stock. Significant support for the stock is positioned at AUD 2.87, while key resistance is placed at AUD 4.14.
Daily Technical Chart – VUK
Considering the stock's current price levels breaking above a symmetrical triangle pattern and technical indicators analysis, a 'Buy' recommendation is given on the stock. The stock was analysed as per the closing price of AUD 3.47 per share as on 03 August 2023, up by 3.27%. Virgin Money UK PLC (ASX: VUK) was last covered in a report dated '25 May 2021'.
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: Investment decision should be made depending on an individual’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report.
Note 3: Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
The reference date for all price data, currency, technical indicators, support, and resistance levels is August 03, 2023.. The reference data in this report has been partly sourced from REFINITIV.
Technical Indicators Defined:
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
The Green colour line reflects the 21-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 21-period, prices are currently in a bullish trend (Vice – Versa).
The Blue colour line reflects the 50-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 50-period, prices are currently in a bullish trend (Vice – Versa).
The Orange/ Yellow colour line represents the Trendline.
The Purple colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period), which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status, while a reading of 30 or below suggests an oversold status.
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