Will TUI continue falling, or will it recover to 795p recent highs?

• TUI shares fell as low as -13% from this week’s highs.
• Travel operator issued a profit warning due to Boeing 737 MAX aircraft issues.
• Now trades 699p (at time of writing).
• Shares -43.1% from 2019 highs; +1.3% from 2019 lows; -37.8% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading TUI  – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 795p. You decide to buy exposure to £10,000 worth of TUI  using a CFD, at the current price of 699p. To do this, you need £2,000.

Let’s assume TUI  recovers back to 795p recent highs (+13.7%). Your profit would be £1370, 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  falls 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.