Will TUI break higher, or will it fall back to 1045p lows again?

• The TUI falling range exists since August 
• Bounced back from falling highs trendline 6 times, most recently last week.
• Now trading 1147.5p (at time of writing)
• Will the pattern repeat itself, testing previous lows?
• Shares -35.6% from 2018 highs; +8.8% from 2018 lows; -25.6% year-to-date
• 14 Dec: Barclays says TUI a safer investment than Thomas Cook
• 13 Dec: AJ Bell says Thomas Cook may look at TUI’s model in envy; Citi says Business still strong
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading TUI – An Example

Let’s say you like the range, you think it’s heading back towards 1045p again. You decide to sell exposure to £10,000 worth of TUI using a CFD, at the current price of 1147p. To do this, you need £2,000.

Let’s assume TUI falls back to 1045p (-8.9%). Your profit would be £890, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. TUI rises 3% and hits your stop-loss. Your loss would be £300.

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