#GOLD #FRANCE News Ryanair intended order 75 new Boeing 737 Max raised an eyebrow. Had the company taken advantage of the plane makers troubles, intending to pick up a bunch of cheap jets in a aviation car boot sale? Or more likely, was this a PR exercise, designed to raise confidence in the jet which has been grounded internationally for 22 months! Perhaps there’s a more important facet to these manoeuvres, one which may make SOME airline shares strong recovery targets.
Recently, Ryanair started trading above 2020’s pre-Covid price level, an amazing accomplishment given passenger numbers remain down by more than 80%. The company, quite forcefully, take the attitude things shall return to normal next year with the assumption Coronavirus shall be vanquished, people will again be happy crammed into a Petri dish of germs, Brexit will work out. And fairly important, the new 737 Max fuel efficient aircraft shall prove safe, reliable and a hit with the public. Doubtless the company will produce some bargain basement ticket prices just to get things moving.
The chart below encompasses some interesting potentials for the long term. Ryanair, presently trading around 15.8 Euro, has very successfully and quite exactly performed according to our report in October, the share rising from 13 Euro to a target 15.8 Euro. We demanded the price actually close above 15.8 to suggest some strong Big Picture potentials, a feat it has achieved several times in the last few weeks. Our inclination is to play safe and sane for the longer term.
For this reason, we’ve established a trigger level at 17.8. In the event Ryanair share prices trade above this level, we anticipate a price lift to a modest 19.2, matching the prior all time high of 2017. Our secondary, if such a level is now exceeded, calculates at a longer term 25 Euro.
If anything about the world presently was “normal”, we’d already be anticipating a trip to 19.2 with some confidence. It occurs Ryanair bullish behaviour may also be due to the number of smaller operators which will not return to flight operations, thanks to financial pressures. Doubtless the company intend to ‘pick up the slack’ from the vanquished.
FUTURES
| Time Issued | Market | Price At Issue | Short Entry | Fast Exit | Slow Exit | Stop | Long Entry | Fast Exit | Slow Exit | Stop | Prior |
| 9:52:25PM | BRENT | 50.36 | |||||||||
| 9:54:36PM | GOLD | 1828.27 | 1821 | 1816.5 | 1797 | 1831 | 1839 | 1842 | 1850 | 1824 | |
| 9:57:12PM | FTSE | 6518.99 | ‘cess | ||||||||
| 9:59:11PM | FRANCE | 5508.6 | 5507 | 5496.5 | 5470 | 5532 | 5535 | 5560.5 | 5593 | 5510 | Success |
| 10:01:17PM | GERMANY | 13209 | ‘cess | ||||||||
| 10:18:20PM | US500 | 3649 | |||||||||
| 10:20:46PM | DOW | 29922 | ‘cess | ||||||||
| 10:22:47PM | NASDAQ | 12466 | Success | ||||||||
| 10:27:14PM | JAPAN | 26670 | ‘cess |