Airline company’s basket weekly uptrend opportunity based On 1.00 Lot Calculation:
- EVENT: White House said on Monday, the United States will reopen in November to air travelers from 33 countries including China, India, Brazil and most of Europe who are fully vaccinated against COVID-19. The travel industry welcomed the upcoming changes with intense stock rise in the airliners sector as the move is likely to boost air passenger travel.
- On Friday (Sept 17) the UK decided to relax air travel restrictions and other countries may take similar steps in the forthcoming period.
- Airline Industry group Eurocontrol reported that passenger numbers in August have recovered to 71% of 2019 levels.
- Airlines have been among sectors worst affected by Covid and a full recovery could see stock prices rise to pre pandemic levels.
- After the news was published yesterday, American Airlines went up 3.04% United Airlines went up 1.64%, and Delta went up 1.67%. British Airways parent IAG rose 11% while Air France-KLM and Deutsche Lufthansa AG each went up about 5%.
HISTORICAL PERFORMANCE
|
Company |
Ticker |
Current price |
Below the pre-covid level |
This year price change |
Average weekly volatility this year |
|
DELTA AIRLINES |
#DELTA |
$40.46 |
39.75% |
+4.35% |
6.76% |
|
UNITED AIRLINES |
#UAL |
$45.03 |
91.56% |
+6.09% |
8.13% |
|
INTERNATIONAL AIRLINES GROUP |
#IAG |
176.15 pnc |
276.10% |
+9.76% |
12.05% |
|
EASYJET |
#EZJ.L |
657.30 pnc |
109.19% |
-22.23% |
10.90% |
|
LUFTHANSA |
#LHA.DE |
€8.66 |
78.18% |
-21.27% |
10.86% |
|
AIRFRANCE |
#AF.PA |
€4.1580 |
127.87% |
-22.10% |
11.91% |
Source: Yahoo finance
STOCK PRICE REACTION: BASED ON STATISTICAL ANALYSIS
|
Downside potential |
Upside Potential |
|
-5.90% |
+8.87% |
|
Potential Profit/Loss on 1 lot of every stock in the basket2 |
|
|
-$14,838 |
$22,258 |
|
-€12,645 |
€18,968 |
|
-£10,842 |
£16,264 |
|
-C$18920 |
C$28,379 |
Data Source on Stock Returns and Volatility: Bloomberg
TARGET LEVELS: SUPPORT AND RESISTANCE
|
Company |
Support |
Current Price |
Resistance |
|
DELTA AIRLINES |
38.03 |
40.46 |
44.10 |
|
UNITED AIRLINES |
42.33 |
45.03 |
49.08 |
|
INTERNATIONAL AIRLINES GROUP |
165.58 |
176.15 |
192.00 |
|
EASYJET |
617.86 |
657.3 |
716.46 |
|
LUFTHANSA |
8.14 |
8.66 |
9.44 |
|
AIR FRANCE |
3.91 |
4.158 |
4.53 |
Note: Support and Resistance Levels have been calculated by using upside and downside potential figures.
Please note that past performance does not guarantee future performance.
1-Calculation Downside/Upside Potential: Based on technical analysis.
2-Profit/Loss Calculation (**): Based on 1 lot (*) on each of the six stocks (6 lots). Range: based on the statistical analysis.
* 1.00 lot is equivalent to 1000 units for Delta Airlines, United Airlines, International Airlines Group and EasyJet while 1.00 lot is equivalent to 10000 for Lufthansa and Air France.
** Calculations for exchange rate used as of 11:10 (GMT+1) 21/9/2021.
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more detail