Technical Analysis Snap: Thomas Cook catches a cold

13th Aug 2009 13:14

Thomas Cook shares took a hit this morning after it informed the market that it had taken a £12.6m hit due to the swine flu outbreak. It also stated that it would be unlikely to achieve its targets for 2010 and downgraded its earnings forecast accordingly. That said it did post a 10.7% rise in revenues in the 9 months to the end of June, compared to the same period last year. Since being quoted on the stock market the shares have had a somewhat mixed time of it, trading from highs in 2007 of 348.75p to lows in December last year at 123.60p. The recovery since December made a high of 303.50p in early May, but since then the share has slipped back finding support on its 61.8% Fibonacci retracement at 192.30p. Thursday's news has seen the share price slip back towards from last weeks highs around 240p to be trading just above a minor support level at 213.55p. Despite this mornings news the number of broker buy recommendations currently outweighs sells by 3 to 1. A break below 198.90 support however could well signal further downside. For periodic TA updates follow me on TwitterAlso read my Investors Guide to Technical Analysis and Level 2