Will TUI turn, or will it continue to rise to November high of 1338p?

• The chart shows the TUI price action since early December.
• Shares in a weeklong uptrend from 1075p recent lows; now at 1206p.
• Shares -37.3% from 2018 highs; +6% from 2018 lows; -21.8% year-to-date.
• 13 Dec: Tour and hotel operator’s business is still strong, says Citigroup.
• 13 Dec: TUI reported that FY profit rose 14% and backed 2019 guidance.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading TUI – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of TUI using a CFD, at the current price of 1206p. To do this, you need £2,000.

Let’s assume TUI trend continues to November high of 1338p (+10.9%). Your profit would be £1090, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. TUI falls 4% and hits your stop-loss. Your loss would be £400.

This is provided for information purposes only. It should not be taken as a recommendation.