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Home / Momentum / Thomas Cook

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Thomas Cook

Is this trend a good trading opportunity?

Will Thomas Cook turn, or will it continue to fall to 2013 lows of 38p?

  • The chart shows the Thomas Cook price action since May.
  • Shares in a 6-month downtrend from 149p May highs; now at 42p.
  • Recent results were disappointing and further weakening in its performance could lead to liquidity concerns according to investment bank Berenberg (1 Oct).
  • Shares -71.5% from 2018 highs; now trading at 2018 lows; -65.2% year-to-date.
  • In the last week, the shares have fallen close to 16%Will this momentum continue?

Click to enlarge

Trading Thomas Cook – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to sell exposure to £10,000 worth of Thomas Cook using a CFD, at the current price of 42p. To do this, you need £2,000.

Let’s assume Thomas Cook trend continues to 2013 low of 38p (-9.5%). Your profit would be £950, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. Thomas Cook rises 6% and hits your stop-loss. Your loss would be £600.

This is provided for information purposes only. It should not be taken as a recommendation.

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.


Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.

Prepared by Michael van Dulken, Head of Research
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
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