At what price do Thomas Cook shares become a 'buy'?
Believe it or not, our chartist isn't convinced the tour operator has finished its crash landing.
20th May 2019 09:05
by Alistair Strang from Trends and Targets
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Believe it or not, our chartist isn't convinced the tour operator has finished its crash landing.
Thomas Cook (LSE:TCG)
Headlines such as, "what are your rights if..." are rarely encouraging when viewing the future for a company share price. Oddly, despite recent trauma, we're not entirely convinced Thomas Cook (LSE:TCG) have finished their crash landing!
The big problem we have is circled on the chart. When the share price was gapped below the uptrend since 2012, this moved the price into a region where the big picture calculated provided an "ultimate" target bottom of -18p, an obviously impossible number.
We're forced to review movements since the price was manipulated below the red uptrend in the hope of finding a level which may prove to be bottom, a point where it will be reasonable to hope for a bounce.
At present, the signals suggest continued traffic below 10p points at an initial 7p. If broken, secondary is a hopeful bottom by 4p.
It's worth remembering that circled area on the chart.
This was a clear indication the stock market wanted TCG down in price with the suggestion the good times were now over. The price will need something approaching a miracle to return it above red on the chart.
Working on the basis a rebound can be hoped, if only due to the volume of folk thinking "TCG is cheap", any bounce from the 4p to 7p zone proving capable of exceeding 13p should have sufficient strength to reach 17p.
If bettered, secondary is at 22p and we'd need stir the tea leaves again to gauge possibilities above such a level.
For the present, Thomas Cook are showing some pretty dire potentials and the Big Picture scenario with -18p is a pretty major concern.
Source: Trends and Targets Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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