The ITV share price rose more than 15% on Tuesday after the UK broadcaster said it expected advertising revenues in 2021 to hit new record highs. ITV’s studio production and broadcasting divisions exceeded pre-pandemic performances, as overall revenues jumped 28% in the first three quarters of 2021.
Describing the results as outstanding, ITV’s CE0 Carolyn McCall says a refocus on improving the video-on-demand offer to match the standards set by Netflix, and a redesign of the ITV hub led to a 22% climb in monthly active users. The changes also led to a 39% increase in the platform’s ad revenues. The company now says it expects a jump in advertising revenue by 24% for the 2021 full year.
Investors were delighted by the news and drove the stock higher. Despite Wednesday’s correction, the stock retains upside momentum as it has found support at the 120.10 price mark.
The upside move stems from a divergence of price action from the RSI indicator identified two weeks ago. A bounce from the current support level allows the bulls to push for the 128.00 price mark (29 March and 14 May highs), acting as the initial barrier. If this barrier is overcome, then the price can retest the 14 June highs at 133.10.
On the flip side, a decline below the 120.10 support and the 200-day moving average just below it opens the door for bears to push towards 111.70. 104.05 and 101.55 are additional targets to the south if the price pushes a more profound decline.
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