#Brent #DAX Virus fears certainly appear to be fouling airline share prices but it’s perhaps worth mentioning neither IAG nor EZY are yet trading in a zone where panic makes sense. They’re both certainly pretty close to messy, their prices not yet entering the official “lower low” flight level to misery.
However, we’ve decided it’s probably best not being flippant about Coronavirus. News coverage now pollutes every single section of Google News – World / Local / Sport / Business / Entertainment(?) / Politics, Tech, even Science!
It’s doubtless fair to assume folk will prefer avoid spending any time in flying Petri dishes while panic levels remain high. This will surely create an ongoing income problem for the travel industry, making it easy to believe the drops since February 20th may simple be early warning of trouble. If this proves the case, weakness against IAG below 394p risks proving messy, signalling the risk of further reversal to 334p. If broken, secondary calculates down at 222p.
Despite being a truly shambolic reversal suggestion – a 50% reduction on current – this risks not being the end of the story as “bottom” works out at somewhere between 100 and 138p ultimately.
At present, there is very little point in drawing a trend line to map the pace of reversals. Were we to do so, about the best we could suggest is of moves above 550p signalling the drop has slowed. In reality, any recovery is liable to prove sharp and vivid, if someone announces they’ve knocked together a cure for Covid-19 in their garden shed! But to be fair, we’d tend believe above just 462p will give sufficient early warning for price recovery.
Time Issued |
Market |
Price At Issue |
Short Entry |
Fast Exit |
Slow Exit |
Stop |
Long Entry |
Fast Exit |
Slow Exit |
Stop |
Prior |
6:45:14PM |
BRENT |
45.56 |
45.2 |
43.06 |
36.56 |
52 |
53.8 |
55.4 |
58.8 |
51 |
Success |
7:37:52PM |
GOLD |
1674.15 |
Shambles | ||||||||
8:09:16PM |
FTSE |
6457.4 |
Success | ||||||||
8:31:33PM |
FRANCE |
5139 |
Success | ||||||||
8:34:14PM |
GERMANY |
11525 |
11419 |
11365 |
11152 |
11590 |
11767 |
11866 |
12015 |
11551 |
Success |
8:36:07PM |
US500 |
2964.07 |
Success | ||||||||
9:17:52PM |
DOW |
25806.6 |
Success | ||||||||
9:20:00PM |
NASDAQ |
8504.12 |
Success | ||||||||
9:21:51PM |
JAPAN |
20424 |
Success |
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