Manchester is RED: MANU stock soars 60% last week

Shares of the iconic Premier League club Manchester United (NYSE: MANU) rises more than 60% in the last week following the news that the club has been put up for sale and most importantly, different buyers are already running up their interests in acquiring it. On the other hand, the club also agreed on a mutual termination of Portuguese football superstar Cristiano Ronaldo’s contract.

Manchester United’s stock price has displayed a significant degree of volatility throughout the last week. In the coming days, Intraday volatility can be expected to continue as more attention understandably turns to who could potentially take control of the club. The soccer club is currently in the fifth position in the Premier League.

Apple has reportedly joined the race to buy $MANU, who else?

Earlier this week, United said in a statement that the board will “consider all strategic alternatives, including new investment into the club, a sale, or other transactions involving the company”. Since the statement, several names have been linked with buying the club. Manchester United already appointed two big investment banks, the Raine Group and Rothschild & Co, to advise on a potential sale.

Manchester United’s current owners — the Glazer family from the United States owning the club since 2005. “As we seek to continue building on the club’s history of success, the board has authorized a thorough evaluation of strategic alternatives,” — executive Co-Chairmen and Directors Avram Glazer and Joel Glazer said in a statement:

Last week, a report claimed that the California-based tech giant Apple had expressed an interest in purchasing Manchester United for around $7 billion. Meanwhile, Britain’s richest man, Sir Jim Ratcliffe is reportedly once again interested in buying Manchester United after the Glazer family said it is considering selling the club. Elon Musk, the world’s richest person and owner of Twitter, also joked on the social media platform that he wanted to buy United.

Can United’s stock continue to pop?

The daily chart shows that the stock has been in a strong bullish trend in the past few days. The stock has rallied from a low of $12 to over $22 after it formed Inverted Head and Shoulders chart pattern. Therefore, the stock is expected to continue its upward path due to takeover rumours and long-term potential. Meanwhile, there are chances the stock is likely to pull back before the bounce because the stock already bounced more than 60% last week.

In the short term, if the stock holds above $20 the next upside target at $23 and $27.70. On the other side, if the price break and close below $20, the next immediate support is to watch $19.20 and then $18. In the long term, watch for the break below $15 or above $28, which will give a larger confirmation of direction in the long term.



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Syam KP | Gulf Brokers

A financial investment professional with over 9 years of FX and capital market industry. Chief analyst at Gulf Brokers