#FTSE #CAC40
Our weekly trawl through Europe, searching for shares with potential, stumbled upon this airline. To risk a word frowned upon in flying circles, it appears Air France KLM share price is ‘crashing’ just a little bit. Visually, we can even blame a GaGa event, the notorious Gap Up, Gap Down scenario which also tends foreshadow severe share price reversals.
Thankfully, the Air France price crash of over 20% was produced by the time honoured tradition of stuffing existing investors. The company, obviously keen to repay French state aid, opted to raise money by issuing shares, thus effectively diluting their share value with a rights issue. Their previous attempt, just over a year ago, presided over a share value decline from 5.33€ down to the 4€ level. This attempt appears destined to make Air France shares worth just 3€ each anytime soon. It’s certainly the case where near term weakness below 3.34€ looks almost certain to make a visit to the 3 euro mark, a point at which we’ve a couple of questions.
As the chart displays, the previous dilution to 4€ did very little to produce any form of coherent bounce, quite the opposite. The Rights Issue of 2021, held against a pandemic backdrop and in an industry which has suffered quite severely, was an initial nod in the direction of repaying the French government and holding a second Rights Issue was never a secret. Perhaps this accounts for the lack of bounce at 4€?
While a visit to the 3 euro level presents a level where a rebound makes some sense, our concern is pretty blunt. It’s unusual for the stock markets to gift wrap a movement such as this and we shall not be aghast if folk wonder whether further pain shall be in store for the carrier?
Our final concern on the matter comes from the circled ‘GaGa’ movement. Over the years, we’ve collated several examples of what to anticipate, when we notice such a market song and dance. The share price was literally gapped UP above the ruling downtrend last Wednesday, then gapped DOWN below the trend today (Tuesday) in a classic “gotcha suckers” movement. Anyone who mistakenly assumed the upward movement was a signal for happy flights ahead will now be walking funny, feeling like they just sat through the latest terrible Sandra Bullock/Brad Pitt/ that Harry Potter bloke movie, The Lost City. Hint; Do not sit still, waiting for the good bit. Despite the cast, there a good bit! At least the film version of “Cats” was so bad, all hope vanished within minutes and you could leave, knowing you’d dodged an atrocity.
Thanks to the GaGa movement, we tend not expect the 3 euro level to provide succour, instead suspecting this level shall break with a descent down to 2.37€ feeling distinctly possible. Less likely, should such a level break, is our secondary calculation down at 1.65€
Of course, the markets occasionally indulge themselves with a good sense of humour. In the case of Air France, above 4.44€ is needed to give the first suggestion a climb back to historic altitudes may be pending. This apparently should trigger an initial 4.83 with secondary, if bettered, at 5.08€. We have our doubts, suspecting 2.37 shall prove worth watching for.
Once again, thanks to the kind folk who discovered a fascinating advert to visit on this page on Tuesday. It was a two latte day!
FUTURES
| Time Issued | Market | Price At Issue | Short Entry | Fast Exit | Slow Exit | Stop | Long Entry | Fast Exit | Slow Exit | Stop | Prior |
| 10:03:35PM | BRENT | 111.42 | |||||||||
| 10:05:08PM | GOLD | 1866.85 | |||||||||
| 10:13:43PM | FTSE | 7530.17 | 7472 | 7453 | 7425 | 7523 | 7539 | 7563 | 7676 | 7471 | |
| 10:15:41PM | FRANCE | 6289.9 | 6237 | 6206 | 6153 | 6292 | 6320 | 6345 | 6380 | 6262 | |
| 10:20:11PM | GERMANY | 14035 | ‘cess | ||||||||
| 10:23:32PM | US500 | 3953.67 | Success | ||||||||
| 10:25:32PM | DOW | 31981 | |||||||||
| 10:28:07PM | NASDAQ | 11812 | Success | ||||||||
| 10:30:17PM | JAPAN | 26678 | Success |
24/05/2022 FTSE Closed at 7484 points. Change of -0.39%. Total value traded through LSE was: £ 8,394,166,006 a change of 28.44%
23/05/2022 FTSE Closed at 7513 points. Change of 1.68%. Total value traded through LSE was: £ 6,535,271,427 a change of -11.05%
20/05/2022 FTSE Closed at 7389 points. Change of 1.19%. Total value traded through LSE was: £ 7,347,493,432 a change of 4.36%
19/05/2022 FTSE Closed at 7302 points. Change of -1.83%. Total value traded through LSE was: £ 7,040,483,001 a change of 0.49%
18/05/2022 FTSE Closed at 7438 points. Change of -1.06%. Total value traded through LSE was: £ 7,006,146,182 a change of 17.44%
17/05/2022 FTSE Closed at 7518 points. Change of 0.72%. Total value traded through LSE was: £ 5,965,741,785 a change of -1.9%
16/05/2022 FTSE Closed at 7464 points. Change of 0.62%. Total value traded through LSE was: £ 6,081,329,244 a change of -11.87%
SUCCESS above means both FAST & SLOW targets were met. ‘CESS means just the FAST target met and probably the next time it is exceeded, movement to the SLOW target shall commence.
Our commentary is in two sections. Immediately below are today’s updated comments. If our commentary remains valid, the share can be found in the bottom section which has a RED heading. Hopefully, this will mean you no longer need to flip back through previous reports. HYPERLINKS DISABLED IN THIS VERSION
Please remember, all prices are mid-price (halfway between the Buy and Sell). When we refer to a price CLOSING above a specific level, we are viewing the point where we can regard a trend as changing. Otherwise, we are simply speculating on near term trading targets. Our website is www.trendsandtargets.com.
UPDATE. We often give an initial and a secondary price. If the initial is exceeded, we still expect it to fall back but the next time the initial is bettered, the price should continue to the secondary. The converse it true with price drops.
We can be contacted at info@trendsandtargets.com. Spam filters set to maximum so only legit emails get through…
Section One – Outlook Updated Today. Click here for Section Two – Outlook Remains Valid shares
Click Epic to jump to share: LSE:AML Aston Martin** **LSE:AZN Astrazeneca** **LSE:BARC Barclays** **LSE:BT.A British Telecom** **LSE:CCL Carnival** **LSE:EMG MAN** **LSE:FRES Fresnillo** **LSE:GLEN Glencore Xstra** **LSE:SDY Speedyhire** **LSE:STAN Standard Chartered** **LSE:ZOO Zoo Digital** **
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Updated charts published on : Aston Martin, Astrazeneca, Barclays, British Telecom, Carnival, MAN, Fresnillo, Glencore Xstra, Speedyhire, Standard Chartered, Zoo Digital,
LSE:AML Aston Martin Close Mid-Price: 626.8 Percentage Change: -6.84% Day High: 665.8 Day Low: 623.8
Target met. If Aston Martin experiences continued weakness below 623.8, i ……..
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View Previous Aston Martin & Big Picture ***
LSE:AZN Astrazeneca Close Mid-Price: 10598 Percentage Change: -0.02% Day High: 10666 Day Low: 10470
In the event of Astrazeneca enjoying further trades beyond 10666, the sha ……..
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View Previous Astrazeneca & Big Picture ***
LSE:BARC Barclays. Close Mid-Price: 162.78 Percentage Change: + 3.20% Day High: 164 Day Low: 157.34
Continued trades against BARC with a mid-price ABOVE 164 should improve t ……..
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View Previous Barclays & Big Picture ***
LSE:BT.A British Telecom. Close Mid-Price: 190.55 Percentage Change: + 1.60% Day High: 191.15 Day Low: 185.95
All British Telecom needs are mid-price trades ABOVE 191.15 to improve ac ……..
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View Previous British Telecom & Big Picture ***
LSE:CCL Carnival Close Mid-Price: 872 Percentage Change: -8.48% Day High: 954.2 Day Low: 868.8
Target met. Weakness on Carnival below 868.8 will invariably lead to 827 ……..
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View Previous Carnival & Big Picture ***
LSE:EMG MAN Close Mid-Price: 243 Percentage Change: -2.13% Day High: 249.6 Day Low: 240.6
Further movement against MAN ABOVE 249.6 should improve acceleration towa ……..
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View Previous MAN & Big Picture ***
LSE:FRES Fresnillo. Close Mid-Price: 818.8 Percentage Change: + 2.30% Day High: 824 Day Low: 794
In the event of Fresnillo enjoying further trades beyond 824, the share s ……..
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View Previous Fresnillo & Big Picture ***
LSE:GLEN Glencore Xstra. Close Mid-Price: 519.4 Percentage Change: + 1.25% Day High: 540 Day Low: 502.9
All Glencore Xstra needs are mid-price trades ABOVE 540 to improve accele ……..
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View Previous Glencore Xstra & Big Picture ***
LSE:SDY Speedyhire Close Mid-Price: 44.8 Percentage Change: -3.66% Day High: 45.85 Day Low: 44.7
Target met. Weakness on Speedyhire below 44.7 will invariably lead to 43 ……..
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View Previous Speedyhire & Big Picture ***
LSE:STAN Standard Chartered. Close Mid-Price: 615.6 Percentage Change: + 2.26% Day High: 621.2 Day Low: 592.6
Target met. Further movement against Standard Chartered ABOVE 621.2 shoul ……..
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View Previous Standard Chartered & Big Picture ***
LSE:ZOO Zoo Digital. Close Mid-Price: 105.5 Percentage Change: + 0.96% Day High: 106.5 Day Low: 105.5
Weakness on Zoo Digital below 105.5 will invariably lead to 103 with seco ……..
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View Previous Zoo Digital & Big Picture ***