If you're looking for a late-cycle recovery-play, Thomas Cook could well be it, says Richard Perry at Central Markets.
The travel giant has completed a significant basing pattern on its chart. A move above 200p has confirmed the bottoming pattern, with a 224p minimum price target, although there is little real resistance until around 240p. Momentum indicators are improving, while the moving averages point to an increasingly positive outlook. Relative strength has also broken a 20-month downtrend. With key support around the 197p neckline, place stops below 185p.
IC Trades are written by Investors Chronicle writers. City Trades are written by selected external contributors. Both are based on the interpretation of patterns on a share price chart, rather than on fundamental analysis of the company's business or prospects.
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