One of the worst charts I've seen

Friday, 29th March 2019 11:10 - by Rajan Dhall

Tui's share price has fallen over 60% since April last year!

Things have just recently got worse for the travel company as they announced that they will make contingency plans for customers after the grounding of the Boeing 737 Max. This compounded the woes for the company who slashed its profit forecasts in January blaming the warm weather and the weak pound for poor performance.

Boeing have commented recently saying they are set to update aircraft technology to bring the planes back to the skies but it's unclear how long this will take. Tui have put aside EUR 200m in connection with the 737 MAX grounding and have subsequently lowered their underlying EBITDA guidance. The company have also said if it is not clear how long it will take to fix the issue they may even set aside more funds to deal with the delay. 

The share price hit all-time lows this morning and looking at the chart there are no levels in sight that could support the price. For value pickers there are two clear levels that stand out, in my opinion, the 821p June'18 low and the 994-1000p psychological level. The day Boeing announces a date or the patch and get flights resuming there will obviously be a relief rally. By the time that comes around the 821p level could act as resistance to watch out. Don't forget the UK authorities will also have to confirm that the plane will be allowed to fly in UK airspace once more.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.