Technical Analysis Snap: ITV posts loss but shares rally

6th Aug 2009 10:18

Broadcaster ITV posted a fall in revenues for the last six months as advertising slumped and also announced the sale of Friends Reunited for £25m, making a loss of £150m on the transaction. They announced a pre-tax loss of £105m but said that they were on track to make savings of £155m by the end of this year. The share price has pushed higher as a result but needs to overcome the highs of the year to continue to push higherThe key resistance is at 45.25p and a rally through here would be positive news for the beleaguered broadcaster after the 16.50p lows posted in March this year.The major long term target for ITV is around 57p which would equate to a 38.2% rally back from its lows at 16.50p, after its decline from the highs of 2007 at 124.70p.There is a support line coming in at 35.50p which can be drawn from the March lows, a break of which would stall the current upside momentum.For periodic TA updates follow me on TwitterAlso read my Investors Guide to Technical Analysis and Level 2