Buy low and get ready for this share to take off

TL;DR

TUI, a German travel company that has faced challenging times, may present an opportunity for investment as its share price reaches a potential major low.

Transcript

hello it's john burford with chart of the week for monday the 18th of july i'm covering tui today i am the huge german based travel company that's fought has fallen on pretty desperate times uh uh you don't have to look uh in the papers too far to see uh headlines of um passengers um in in in anger usually about the treatment they're getting uh on ... Read More

Key Insights

• 😀 TUI, a German travel company, is currently facing challenging times amidst negative headlines and a significant drop in share price.
• 😘 However, there are indications of a potential major low, such as a momentum divergence and a pop above a long-term trend line.
• 🫤 The improving sentiment in the overall market and the possibility of an ending diagonal or wedge pattern suggest that TUI's share price may start to improve.
• 🎯 The downside risk for TUI shares is limited, and there are targets for potential appreciation.
• 📉 TUI's share price has been on a downward trend for four years, making the recent potential major low significant.
• 🎁 The improving sentiment in the market and the potential turnaround in TUI's share price may present an opportunity for investment.
• ❓ It is important to closely monitor the developments in TUI's share price and overall market sentiment to assess the potential for further improvement.

Questions & Answers

Q: Why has TUI been facing challenging times recently?

TUI has been facing challenges due to negative headlines about customer treatment during holidays and a significant drop in travel demand caused by the COVID-19 pandemic.

Q: What indications suggest that TUI's share price may have reached a major low?

There is a momentum divergence and a pop above a long-term trend line, indicating a potential turning point and the possibility of an improvement in share price.

Q: How does the overall market sentiment affect TUI's potential for improvement?

As the general market, including the FTSE and American markets, improves, sentiment is likely to flow into TUI shares, increasing the chances of their appreciation.

Q: What pattern is observed in TUI's chart and why is it significant?

The chart shows an ending diagonal or wedge pattern, which often occurs at the end of a long trend. This pattern, combined with the potential major low, suggests a reversal in the short-term trend.

Summary & Key Takeaways

• TUI, a major travel company, has been struggling amidst negative headlines and a significant drop in share price due to the impact of COVID-19.

• Despite the negative news, there are indications of a potential major low, with a momentum divergence and a pop above a long-term trend line.

• The improving sentiment in the overall market and the possibility of an ending diagonal or wedge pattern suggest that TUI's share price may start to improve.