Thomas Cook: Ready to Breakout

Is Thomas Cook ready for some serious momentum run in near term? Well Technically, it appears so.

Here’s what Thomas Cook stock has done recently

Thomas Cook stock took off in a big way around middle of August and rallied from 50 to 80 by end October. Since then, the stock has gone quiet and been on sideways mode. From level of 80-81, the stock slipped to 69. It’s only today stock bounced back with intensity. It can be indication that correction is over and stock is ready for some serious momentum run. One can make this assumption and buy the stock for ST trading with stop loss at 68. Having said that, there is a problem with resistance on weekly chart.
THE BIG PICTURE: Resistance at 76-80 on weekly chart

 Technically, in near term stock appears set for upside but on a broader time frame stock has a resistance of 76-8o to take care. Thomas Cook has not been able to cross this resistance since last 4 years. Will this time be different? We don’t know but if stock does that this week – then expect more momentum and real solid gains in weeks and months to come.