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Airline company’s basket

Market Opportunities - 21/09/2021

21 September, 2021

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

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

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  • CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
  • CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.