Thomas Cook (India) Limited (THOMASCOOK) Stock - Complete Technical Analysis - Sep 20, 2024

Thomas Cook Stock Analysis: Key Levels & Market Trends to Watch

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions. Let's dive into the technical analysis of Thomas Cook (India) Limited, currently trading at 204. The stock exhibits a P/E ratio of 92.4, reflecting a high valuation relative to earnings, while the book value stands at 39.4. Dividend yield is at a modest 0.20%. ROCE and ROE are at 9.92% and 5.55%, respectively, indicating a need for improvement in profitability metrics.

Currently, the Average Directional Index (ADX) is low at 16.43, suggesting weak trend strength. The Relative Strength Index (RSI) is hovering around 40.7, signaling that the stock is approaching oversold conditions. Stochastic indicators also confirm this, with values under 32. The MACD is negative, indicating bearish momentum.

Support levels are notably at around 197.15 and 164.2, which could act as strong buying zones if the price approaches these levels. Resistance appears stronger at around 223.1, a pivot point that traders should watch closely. Additionally, the stock is trading 22.84% below its 52-week high of 264, achieved in July, and 79.39% above its 52-week low of 113.55 from October last year.

The trend is mixed, with short-term moving averages suggesting bearishness while long-term indicators might show some potential for recovery. Monitoring the volatility indicated by the Average True Range (ATR) is essential, as fluctuations could present trading opportunities.

In summary, Thomas Cook is experiencing bearish pressure, but support levels might provide a buying opportunity if approached. Traders should stay vigilant around the resistance zone to gauge any potential breakouts or reversals.