Technically, the security is in a negative configuration in the short term as shown by the bearish trend of daily moving averages. A decline to the GBp 2603 support level seems inevitable. However, a positive reaction on this level can be anticipated for a rebound towards GBp 2860.
Considering technical and fundamental elements, investors should wait for the stock to reach the GBp 2600 area to open long positions. The target will then be GBp 2860. Nevertheless, a stop loss will be placed under the support level.
Associated British Foods plc is one of the largest European food processing groups. Net sales break down by family of products as follows:
- grocery and bakery products (21.3%): tea (Twinings brand), oils (Mazola and Capullo), spices (Spice Islands and Durkee), jam, bread, biscuits, sauces, etc.;
- sugar (12.9%): Silver Spoon, Billington's brands, etc.;
- ingredients (10.9%): yeasts, flavorings, emulsifiers, sterols, esters, etc.;
- processed food products (10.1%): mainly cereal and animal feed.
The remaining sales (45.6%) are from clothing distribution (408 outlets located mainly in the United Kingdom, Ireland, Spain, Germany, the Netherlands, and Portugal under the Primark and Penneys names).
Net sales are distributed geographically as follows: the United Kingdom (36.8%), Europe and Africa (38.2%), Asia/Pacific (12.7%) and Americas (12.3%).
ASSOCIATED BRITISH FOODS PLC 
