Waiting For The TUI Group Stock To Make A Move

The TUI AG (ETR: TUI1), also known as TUI Group, has come out with a statement this week, saying that it is “partially restarting its Summer 2020 programme”. The company is planning to operate around 30% of its capacity in Q4, however, from mid-June and beginning of July, the tour giant will partially re-open its flights from Germany, Belgium, Netherlands and Switzerland. From around mid-July, TUI will start flying to the Mediterranean countries again, but not on a full capacity, as some restrictions are still in place in those EU states.

Looking at the technical picture of TUI1, we can see that after a sharp acceleration to the upside in the end of May, and hitting the 6.96 barrier, the buyers eased off a bit, allowing the stock to correct lower. That said, the share price continues to balance above its key support area between the 4.71 and 4.80 levels, which mark the high of April 14^th and the low of June 15^th respectively. TUI1 is currently stuck between two short-term tentative lines, a downside one taken from the high of May 27^th and an upside one drawn from the low of May 14^th. We will take a neutral stance for now, until we see a clear break through one of those lines.

A violation of the aforementioned downside line and a price-rise above the 5.88 barrier, marked by the high of June 10^th, could attract more buyers into the game, this way allowing the stock to travel further north. TUI1 might then drift to the 6.31 obstacle, a break of which could clear the path towards the highest point of May, at 6.96. Initially, the stock may stall there temporarily, however, if there are still some new investors interested in TUI1 at that price, this could help raise it further, possibly aiming for the 7.47 level, marked by the highest point of March.

Our oscillators, the RSI and the MACD, are slightly on the flat side. In addition to that, the RSI is a bit above 50 and the MACD, despite sitting above zero, is running below its trigger line. We will not place too much emphasis on those oscillators, at least for now.

On the downside, if the aforementioned upside line breaks and the share price drops below the 4.13 hurdle, marked by the high of April 30^th, that may open the door for further declines. The stock might then drift to the 3.63 obstacle, or even to the 3.18 zone, marked by the low of May 21^st. If there are still no new buyers in sight, TUI1 could continue sliding, potentially aiming for the lowest point of May, at 2.72.

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