Travel operator impacted by global unrest
Travel operator Tui Travel (TT.) saw its stock recently break down through a technical level which might attract more bears to the stock:
The 20 day exponential moving average, pierced down through the 50 day exponential moving average and the 200 week exponential moving average yesterday.
The company has been impacted by the repatriation of holidaymakers and lost revenue from crisis torn Egypt and Tunisia, which it claims will cost Europe's largest tour operator between £25 million and £30 million in the current quarter.
Civil unrest in Egypt and Tunisia meant that TUI Travel stopped offering holidays from Germany to Egypt and Tunisia last month, although the service has since resumed.
On the other hand Spain, Turkey and Greece are experiencing a surge in demand as consumers look to take their holidays elsewhere.
As long as tensions remain in North Africa and the Middle East, it will give existing shareholders uncertainty as to how the company will absorb any future disruptions to its service.
On top of that it will have to stomach higher fuel bills for its air fleet as a result of the surging oil price, something British Airways under its new guise of IAG is painfully aware of.
Look for 200p to be tested, but if it closes above 260p, cut the position.
Update
Kazakhmys (KAZ) suggested to sell at 1448p. The stock closed yesterday at 1427p. Lower the stop based on a close above 1530p.
Mitchells & Butler (MAB)- 330.8p – the stock closed at 316.4p. Sit tight for now but if it closes above 340p look to throw the towel in: otherwise aim for a price objective of 290p.
Rank (RNK) – suggested as a sell at 126.5p – the stock closed at 130.7p yesterday after excellent results last Friday, while the outlook also was surprisingly strong given the UK's weak economic climate. Use the market's weakness as a way of exiting the stock with loss limitation in mind.
Debenhams (DEB) – suggested as a sell at 67.15p, the stock closed yesterday at 61.35p. Lower the stop to 64.5p as the stock is struggling to break through the 20 day exponential moving average.
Intertek (ITRK) – suggested to sell at 1799p, the stock went through the stop of 1860p and should be closed.
The writer does not hold any shares or derivatives in the above mentioned companies. The material for this report comes from Sharescope.
Most watched Money videos
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- Blue Whale fund manager on the best of the Magnificent 7
- Mercedes has finally unveiled its new electric G-Class
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Mini Cooper SE: The British icon gets an all-electric makeover
- Kia's 372-mile compact electric SUV - and it could costs under £30k
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Introducing Britain's new sports car: The electric buggy Callum Skye
- Top Gear takes Jamiroquai's lead singer's Lamborghini for a spin
- Footage of the Peugeot fastback all-electric e-3008 range
- Mail Online takes a tour of Gatwick's modern EV charging station
- Incredibly rare MG Metro 6R4 rally car sells for a record £425,500
- Reeves will have to turn to wealth taxes to plug the...
- Even London Tunnels is shunning the London Stock Exchange
- Top money managers are wary of Shein float
- Big NatWest shares sale to the public may be axed
- Drowning in debt: Here's the real reason our lakes and...
- JEFF PRESTRIDGE: Has Santander found the answer to...
- HAMISH MCRAE: The promise of riches must be met
- Melrose bosses scoop £300m bonus bonanza
- CITY WHISPERS: George Osborne springs to life after...
- Britain lags woefully behind major rivals on 5G
- THE HENDERSON SMALLER COMAPNIES INVESTMENT TRUST: The...
- MIDAS SHARE TIPS: The unheralded eco firms being turned...
- April showers blamed as shoppers take the month off
- MARKET REPORT: FTSE keeps on falling as rate cut hopes...
- ALEX BRUMMER: Weak enforcers betray UK
- Royal Mail £350m in red but 'back on track', according to...
- INVESTING EXPLAINED: What you need to know about meme...
- M&S clothes are back in fashion - how about its shares?