Chart of the Day: Thomas Cook

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Chart of the Day: Thomas Cook

It would appear that Thomas Cook has been in the news for all the wrong and tragic reasons in the recent past, as the tourism industry was hurt by the ravages of terrorism. But at least the latest newsflow, including the announcement of a hotels sourcing deal with Webjet, temporarily provides a respite.

Thomas Cook (TCG): Triangle Break Targets 80p Plus

Thomas Cook provided a surprising mega recovery situation a few years back after falling as low as 8p in 2011. It then rallied up to a peak of over 180p in 2014. However, it has been a slow erosion since then in terms of the price action, which is arguably something that makes the decline all the more painful. Nevertheless, it is very often the case when sentiment towards a stock falls to the floor, it is time for the shares to pick themselves up by the bootstraps. This is what we may have at Thomas Cook, in a point underlined by the latest breakout from an extended triangle formation which has been in place since the end of June. The big plus point as far as this breakout is concerned is the way it is backed by an uptrend line in the RSI window. This can be regarded as a leading indicator on the upside argument, which should ensure the stock heads up to the floor of the May gap at 81p. The time frame on such a move is regarded as being the next 6-8 weeks, with any dips to the 50 day moving average at 62p regarded as buying opportunities. Only sub 60p really delays the recovery scenario.

Thomas Cook

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