Norwegian Air Shuttle (NAS) OSE: Daily seems to be gearing up!I think the bottom is in (unless issue). And now with the June numbers more than doubling, NAS could see aa decent upside and make some recovery. We are still not out of dark water with 50% of population still not vaccinated and the alarm bells about Delta variant. But ignoring those variables and just looking at the current picture I think it make's a good buy case.
BTW this is not a financial advice. I share my opinion and you should #DYOR
Please hit the like or leave a comment to share your thoughts.
Travel
BA $240 moving to in short term BA Current Price $221 Price Target $240
Option - $220c 9/10 ($568,1.7% till breakeven)
After reporting their first profitable quarter in 6 quarters I believe now is the time to add some BA to your portfolio. FDA approval for COVID vaccines coming in just last week shouldact as a tailwind for the travel sector and especially Boeing. In June, Boeing booked defense contracts valued at $1.1 billion. The contract flow was carried by orders for the CH-47 Chinook and the AH-64 Apache. Seemingly, July was even better in terms of contract value. There was a fear out there that BA may see a decline in defense spending due to changes in administrations as we went from the trump administration to the Biden Administration but that is simply not taking place, defense contracts have been very strong for the company. Looking at the chart I believe we will trade up to the top line of resistance around $240 over the coming weeks.
BA Should Move Higher Here Boeing just reported its first profitable quarter in 6 quarters, we should continue to see Boeing report profitable quarters given the emergence of air travel that has taken place over the past couple months. Also, if your an investor that is worried about a slow bounce back in travel due to the delta variant, you should take comfort in the fact that 40% of boeing's revenue its defense business which has held strong during the entire pandemic.On Friday after the market was closed Boeing was awarded a $487m contract from the US Army for Apache AH-64 engineering services and technical support.
Technical analysis update: Lufthansa AG (28th July 2021)In 2020 airlines around the globe experienced one of the worst years in their history due to pandemic crisis and worldwide restrictions on travel and freedom of movement. This had detrimental impact on airlines around the world. Story is no different for Lufthansa AG. Last year German government bailed out Lufthansa AG with 9 billion euros. Subsequently German government gained 20% stake in the company which is supposed to be temporary until LHA gets back on its feet. As part of the bailout deal German government is not allowed to interfere in daily operations of Lufthansa AG. German government having 20% stake in the company suggests relatively lower risk associated with this investement as opposed to other airline investments where no government is involved with the company. Company's stock declined since December 2017 until September 2020 when it reached low of 6.848 EUR per share. Since then price reversed and started to make higher highs and higher troughs. Within last two months divergence between price and RSI became observable. In addition to that RSI, MACD and Stochastics turned bullish. Though, ADX contains low value suggesting that weak or no trend is present. Despite that we think LHA is poised to move higher eventually. In the short term we expect company to move sideways and struggle but in the long term we expect LHA to perform well. We would like to set our long term price target for LHA to 12 euros per share.
Divergence between price and RSI:
Disclaimer: This analysis is not intended to encourage buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.
CCL Big Picture (BIG Picture) LevelsSo I did a bigger picture and yes normally our focus is on penny stocks. But that also involves looking at broader trends. So, travel and leisure penny stocks, for instance. Sub $5 stocks like TRVG LTRPA and AHT are all at "risk" of pressure from negative sentiment in larger market trends. CCL has been somewhat a bellwether for certain travel & leisure penny stocks and right now appears to have its trend echoed with stocks like the ones mentioned here.
I took the Fib retracement out to feb 2018 when CCL reached its 3-year high and used last year's low as the anchor. What was interesting was how CCL traded around the 786 level. Coincidentally, it has been an interesting area for the stock and wouldn't you know it, though it broke below its 200DMA, it's back to testing the 786 fib line. With Biden commenting on the state of the economy next week, all technical levels could be important to monitor. In this case, the 786 fib seems to be a good one to pay attention to right now.
Technical analysis update: LUV (13th July 2021)Southwest Airlines Company experiences correction similarly like Delta Airlines. Graphs of these two companies show high positive correlation. Though there are some differences. In Southwest Airlines Company RSI bottomed out and reversed back above 30 points. MACD and Stochastics show first signs of reversal too. In addition to that LUV did not retrace its recent opening gap. These are all bullish developements for LUV. Because of that we would like to set our short term price target for LUV to 55 USD and our medium term price target to 57.50 USD.
Correlation with DAL:
Disclaimer: This analysis is not intended to encourage buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.
JBLU $22 PTJBLU Current Price $17.10 Price Target $22
$17C 7/16 ($52,2% till breakeven)
My thesis for JBLU is similar to BA the numbers from travel this weekend are going to give a bump to the entire travel sector. The airliners JBLU especially is down from its 52-week highs and could see a move up on the backs of strong travel data. Savings rates are still very high, the consumer has money to spend I think the trend of increased travel continues which will benefit JBLU. Technically JBLU is hovering around $16.70 support, I think JBLU holds that support and moves up $18 in the short term and moves to test the top line of resistance on current trend at $22.
AirBnb - expect downside Airbnb's IPO price was $68, and it listed at $146, a massive premium. Naturally there is a fair amount of selling pressure, and it may struggle to maintain its price above its listing price.
On the expectation of broader market downside, expecting price to drift down to $80-90 range.
Technical analysis update: ABNB (8th June 2021)ABNB has been publicly traded since 10th December 2020. ABNB has enjoyed wild ride up and down since then. Currently, we think there is high possibility that ABNB bottomed out on 19th May 2021 and that there is good chance it will continue upwards. Stochastics, MACD and RSI are bullish. In addition to that moving averages are also bullish. We would like to update our short term price target for ABNB to 160 USD per share.
Disclaimer: This analysis is not intended to encourage buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.
$RCL Low Volume Pullback Royal Caribbean Group shares have pulled back on low volume after breaking out of their bullish flag pattern. This indicates that $RCL could see a large move to the upside soon. However, it is possible that we need to chop around a little more and let the moving averages catch up before a breakout. Like and follow for more :) Good Luck!
#DESP 1W- LONG TERM HOLD / LATIN AMERICAN UNICORN.Despegar.com, Corp., its an online travel company that provides a range of travel and travel-related products through its websites and mobile applications in Latin America. The company operates through two segments, Air; and Packages, Hotels and Other Travel Products. The company offers airline tickets; travel packages, hotel rooms, car rentals, bus tickets, cruise tickets, travel insurance, destination services, and other travel-related products, which enable consumers to find, compare and purchase travel products through its platform.
Market cap: 1.025B
It almost redundant that most affected companies by COVID-19 lockdowns and restrictions were travel, hotels airfreight firms.
Since Feb 18th to March 23th of 2020, its price sink by a -71%. Beside this massive hit, lockdowns were translated into less billing and then, into less earnings per share. DESP missed all earning estimates from 2020Q2 to 2021Q1. A sector that is completely devastated, but now showing some sings that reach its bottom.
With the re-opening of most of Latin American economies and vaccination moving forward, tourisms might rise again on last two quarters of the year and in 2022.
Technically, DESP its doing quite good since the dip in March 20''. A really long term trend has been broken and a new uptrend has been confirmed.
Now, we are on a turning point, were price must overcome 14.70 level. Fibonacci extension shows our first target at 16.94 (+17%) and I believe that its highly possible to reach a 21-22 level (+49%)by Q4 if balances sheets start to showing some improvements.
I am already in a position since 12 USD, but I´ll open another position if price reach a 15-16 level, setting my stop loss at 13.5
Stochastic Oscillator its looking great with a possible K/D cross right now. Stochastic its showing a little divergence from January to middle march, but I think that its already discounted.
SABR looks poised to fill the gapSabre is involved with the travel business so it is a reopening play. Should be a good trade; I won't be in it long. It also popped up with institutional buying of the $14 strike calls.
Fair Value Estimate from Morningstar: $17.10
June Expiration; $14 strike Calls are the way to play it. The more time the better. Will roll the calls out to further expirations and higher strikes as it climbs towards its FVE of $17.10.
$TRIP Surge in travel comingHello,
A number of reports have been released in recent weeks that hint at travel becoming red hot as the world pulls out of the covid crisis. With 50% of US adults now vaccinated expect people to use those stimulus checks to book trips and travel. We've all been pent up inside. This is one of the trades I am most excited about For June - August. My personal price target is between 46-52.
Beyond the reports we see the usual hallmarks of bulls attempting to regain control.
1) OBV has flipped the average and accumulation has started to occur
2) CMF has halted the downward decline as buying pressure from the accumulation is taking hold -- meaning that people now believe it may be worth more in the future where as two weeks ago they though it would be worth less.
3) the MACD short term has crossed over the MACD long term. Meaning that suddenly the average price is eating away at that 'negative average loss per day' and is pushing back towards a neutral 0 but with bullish momentum behind it.
This trade is still early on, but it's a good entry price if you're looking for a travel option. I looked at a large number of cruise lines, airlines, and other travel associated tickers. This one looks appealing because it's close to a recent low, has cheap options, and has a good chart--imo.
As always, control your risk, trade carefully. I am not responsible for your trades, gains, or losses. I just find ideas and present them.
Best of luck.
BA out of descending wedge with bounce on retest! BREAKOUT ALERTThe last two times BA has seen this defending wedge breakout since the covid drop it’s seen multi day runs. This could be the start of another leg up and possibly the 300 move. Will be looking to play the breakout not longer dated calls since it’s been so news driven. Will just buy and roll shorter calls as the opportunity presents itself. It has been so news driven I don’t want to play the longer calls and tie up capital. Will be looking at the MA for scales 50 MA is shown and just above current levels.
AMERICAN AIRLINES - Up 12% since last postOne of the last 'Hidden gems'' trades of the covid era, American Airlines could be a nice flight to Money-Land.
With airports opening and people around the world ready to fly and travel again, AAL stock is up over 12% since last post and technically the price is in an ascending channel and should rise to test the 30-32$ resistance with potential of breaching over towards the normal 50-55$ levels.
Let's travel guys and don't forget to visit CYPRUS for your holidays.
(come visit me in Limassol)
the FXPROFESSOR
Accumulation phaze of a lifetime As we know The airline and travel industry came under immense pressure during the pandemic, Stacking up massive losses over the past months.
For the period ended 31 March, Tui posted a net loss of €1.47bn, which widened from a loss of €861.4m a year prior, Group revenue was €716m, down 89% the company said.
Yet we need to stay optimistic but hopeful in a way,
As the pandemic is still disrupting many sectors, we can start to see the light at the end of the tunnel.
With the vaccine passes rolling out, most airliners can start seeing positive signs of a long-term recovery,
With bookings increasing by the day, Most are working towards regaining full potential
This might be a great time to accumulate some shares looking forward
$JETS - Recovery of the Airline Industry“The U.S. Global Jets ETF $JETS provides investors access to the global airline industry, including airline operators and manufacturers from all over the world.”
TECHNICALS
$JETS is currently trading at $25.50 which is 13% below their most recent high of $28.98 which was made in March 2021. The stock has been in an upward trend since October 2020 as a result of increased vaccinations around the world and strong guidance. As seen on the chart, between 2017 and early 2020 $JETS established a strong support zone between $27.50 and $28.50. With travel expected to increase into the summer and vaccinations continue to be rolled out, $JETS can potentially see a 10% move and settle between $27.50 and $28.50 in the coming months.
RECOVERY
Based on their most recent earnings reports, airline companies such as $AAL, $DAL, $LUV, and $UAL have all posted that their revenue is up 100% or more from their pandemic lows. Although revenue is sitting around 50% of pre-pandemic levels, the growing number suggests that the industry is recovering.
RISKS
The greatest risk to the travel industry at the moment is the massive increase in covid cases in India and the emergence of the new covid variant B.1.617. Although much more information is needed, the new variant appears to be spreading at a much faster rate than before and it is unknown if vaccines will help prevent the contraction of the virus.
Anthony, OptionsSwing Analyst
ABNB ER run up $ABNB 2HR Chart...
FA & TA
After surging to all time highs after just 2 months from IPO, we have seen a 30%+ correction from February's Highs. Now... with vaccines and more people wanting to experience certain activities that once was restricted due to a pandemic, ABNB's road to recovery could be starting soon. With Summer approaching and leisure travel activities expecting to rebound from March 2020, this is stock worth keeping an eye on for the Long Term and with Earnings approaching it could give investors a clear direction for the company. Now for the short term, it is possible we see a technical breakout of the falling wedge to retest the overall downtrend resistance (white line). Falling Wedge Breakout target - $160-165 needs to reclaim over 157.10 first. Keep in mind overall market sentiment is choppy!
* Under 143 invalidates this idea *
$DIS, May 2021On 3 moth chart, squeeze right now, break out soon. 5 day chart, using Fib Tool to check resistance, predict consolidation to at 182 and break out to 184. Bullish confirmation in MACD with crossing. At open will need another confirmation with 9 day EMA crossing middle Bollinger Band for a entry point. Stop loss set at 180. Exit at 184.