Will TUI break higher, or will it fall to 1085p lows again?

• The TUI falling range has developed since August.
• Shares fallen back from resistance ceiling 9 times.
• Now trading 1170p (at time of writing).
• Will the pattern repeat itself, testing previous lows?
• Shares -2.5% from 2018 highs; +7.6% from 2018 lows; +4% year-to-date
• 3 Jan: Moody’s says TUI to benefit from EU/US/UK post-Brexit flyover arrangements.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading TUI – An Example

Let’s say you like the TUI range, you think it’s heading back towards 1085p again. You decide to sell exposure to £10,000 worth of TUI using a CFD, at the current price of 1170p. To do this, you need £2,000.

Let’s assume TUI falls back to 1085p Dec lows (-7.2%). Your profit would be £720, 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.