DEO Price Prediction Next Week
Based on the provided data and recent market developments, here's the analysis for DEO's price prediction for next week:
Technical Analysis
The technical indicators show:
- RSI at 55.17 indicates neutral momentum, neither overbought nor oversold
- MACD at -1.37 suggests bearish momentum in the short term
- Current price is trading below both 20-day (121.99) and 60-day (122.68) moving averages, indicating a bearish trend
Key Price Levels
- Fibonacci resistance levels: R1: $123.35, R2: $125.97, R3: $130.22
- Fibonacci support levels: S1: $114.86, S2: $112.24, S3: $108.00
- Fibonacci pivot point: $119.11
Recent News Impact Two significant developments affecting DEO:
- Strategic Portfolio Review:
- News of potential sale of Guinness brand and Moet Hennessy stake initially drove shares up 4%
- However, DEO officially denied these rumors on January 26
- Upcoming Catalyst:
- Interim results announcement scheduled for February 4, 2025
- Guinness investor and analyst day planned for May 19-20, 2025
Price Prediction for Next Week
Based on technical analysis and news sentiment:
Most Likely Scenario (60% probability):
- Price Range: $116-120
- The denial of asset sales could create short-term pressure
- Technical indicators suggest continued bearish momentum
Bullish Scenario (20% probability):
- Price Range: $120-123
- Triggered if interim results preview shows positive indicators
- Resistance at $123.35 needs to be broken for further upside
Bearish Scenario (20% probability):
- Price Range: $112-116
- Could occur if broader market sentiment deteriorates
- Support at $114.86 is crucial to prevent further decline
Trading Recommendation SELL with target price of $116. Place stop loss at $121.50.
DEO Similar Chart Price Prediction
The price of DEO is predicted to go up 5.11%, based on the high correlation periods with DE. The similarity of these two price pattern on the periods is 94.95%.
DEO
DE
Up: 5.11%Similarity: 94.95%
DEO Revenue Forecast
DEO EPS Forecast
DEO VS S&P500
Across the U.S., Diageo's distributors have more than 2,800 dedicated salespeople focused solely on the company's products. This sizable support base has contributed to above-average operating margins in this highly profitable region.
Premium distilled spirits is an affordable luxury category that should benefit from long-term demand growth from aspirational and high-income consumers.
We believe the book value of equity is understated by at least GBP 3 billion, owing to the undervaluing of maturing inventory, which is recognized on the balance sheet at cost.