Will Thomas Cook turn, or will it rise beyond 39p?

• The chart shows the Thomas Cook price action since late November.
• Shares in a weeklong uptrend from 26.9p recent lows; now at 39p.
• Shares trade at 2019 highs; +29.3% from 2019 lows; +26.3% year-to-date.
• 03 Jan: Moody’s says US/UK/EU overflight agreement is credit positive for UK airlines
• Thomas Cook makes a significant portion of earnings from EU flyover rights
• Shares +38% this week. Will momentum continue towards Nov high of 49.6p?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Thomas Cook – 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 Thomas Cook using a CFD, at the current price of 39p. To do this, you need £2,000.

Let’s assume Thomas Cook trend continues to late November high of 49.6p (+27.1%). Your profit would be £2710, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. Thomas Cook falls 9% and hits your stop-loss. Your loss would be £900.

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