Thomas Cook (trading statement 26 September)
A recent tie-up with Expedia confirms the remarkable resurrection of Thomas Cook. Expedia will be the preferred provider for many of Thomas Cook’s holidays, giving Thomas Cook access to 60,000 more hotels, thereby boosting its attractiveness to customers. A recent slowdown in its German business is a worrying development, so investors will want to see whether the situation is showing any signs of improvement. Rival TUI’s trading statement this week (28 September) will also be worth watching to see where their areas of weakness and strength are.
A pullback to the 50-day simple moving average (SMA) of 115p looks to be coming to an end, with the share poised to move higher. A return to the 128p level would put the shares above key resistance from September, and also from back in 2015. This looks to be an interesting buying opportunity, with the 50-day SMA a good place for stops.