price prediction

Tui stock price analysis: Will the current bearish momentum end?

  • Tui stock had a great start to 2023 with a huge upsurge in its price but this happiness didn’t stay for long.
  • After hitting a high of 1080£, the stock has crashed more than 40% in the past 6 months.
  • The stock is currently stuck in a zone and the current setup looks highly negative.

TUI Group is a German leisure, travel, and tourism company. TUI is an acronym for Touristik Union International. TUI AG was known as Preussag AG until 1997 when the company changed its activities from mining to tourism. It is headquartered in Hanover, Germany. 

The company has a fair-looking balance sheet with stable growth in revenue every year. The company has performed great in the past 3 quarters and is expected to continue this momentum ahead too.


Technical analysis for the Tui stock

Tui AG stock hit a low of 500£ in April and has been moving sideways since then. Sellers look highly active currently and are not letting the price breach its resistance at 625£.  As long as the stock trades in the current zone between 500£ and 625£, it lies in a risky zone and can slump further down. Only if the stock crosses 625£ comfortably, one should look to enter. Till then, the best would be to stay away and look at the movements. The current support at 501£ happens to be the stock’s all-time low so if we see the price going below this level, we have no targets in that region and a big downfall can be seen.

A one-hour time frame gives us a clear picture of the stock’s position. 50 and 100 ema are currently the price and give us a strong selling indication. This is the same case with all other prominent indicators where all of them predict a further downfall in the stock.

The stock is near its support at 556£ and if the stock does not sustain above this level, we can see 500£ levels super soon. 

In case the stock starts to go up, one must wait till it has crossed its resistance at 625£ before making an entry. 

The volume candles in the chart below clearly show big red candles meaning a big number of sellers are active in the market. This is another reason why we expect the price to go even further below. One should wait for a considerable amount of time before making an entry as even one small negative news can lead to the stock crashing badly.

Conclusion

The stock does not look good at all currently and therefore the best would be to stay away as of now. Traders should look closely as the current setup suggests a good short position. Analysts indicate a flat year for the stock, therefore, suggesting low chances for a big breakout shortly ahead.

Important technical levels

  • Major support levels- 560£ followed by 500£.
  • Major resistance levels- 610£ followed by 625£.
Deepika