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...
Although we see a broad rally today we see travel and small cap companies outperforming. Johnson & Johnson's COVID-19 vaccine was authorized for use in the US over the weekend. It is the third approved drug in the US, following the vaccines from Pfizer/BioNTech and Moderna. However, while the earlier two vaccines required two doses, the drug from J&J is a...
LHA is a german airline giant in distress due to covid travel restrictions
However, the company is still great and it is bouncing from the absolute lows!
So the reversal has already begun and there are 3 targets on its way UP!
Also, on the fundamental side, it is the too big to fail case
Which means the...
That Lufthansa should have been sent into insolvency would probably have been the best option to restructure the company.
Existing shareholders, above all Heinz Hermann Thiele, would have lost their money (capital market risk) and the entire bondholders would have had to convert their bonds into new shares (debt-to-equity).
Lufthansa would be a debt-free company...
Strong support 8.000 - 9.000
1) Historically worked support level. 1995, 2003, 2009, and 2012. All rejections have been extremely profitable.
2) 2x equal waves from the top AB=CD
3) Fibonacci Extension 162% and 127%
4) Orange minor trendline third touch
5) Channel projection lower trendline worked perfectly
The German government wants to rescue Lufthansa and provide massive liquidity. Is this the basis for a go-around or is there a threat of a very hard landing?
The share has at least arrived in an important trend reversal zone.
Greeting from Hannover (Lower Saxonia)
Hi, today we are going to talk about LHA
We observe a D1, some important points. The details are highlighted above.
Thank you for reading and leave your comments if you like.
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I think think this is nice time to buy and hold. This is long term trade, not short one. Black ones are levels for those who are looking for some shorter trades ( you can DM me for more)
My play is Buy with R/R 3:7
I Will take a closer look at RSI lvl 50 and MA200. The reason is if the price holds above MA200 and the RSI 50 is crossed then new trade can be made. Anyway, DAX holds many right now oversold stocks such as BMW, LHA, DAI...
Note the square, Fibonacci 0.78 reman as strong support. Black lines are multi-year significant levels and will be crucial for my next trade. According to RSI, we can see some future drop coming in.
That is the case if values continue to move in 45-25 range.
After all, the dividend is OK, so some long is not so bad to have.
Opening prices: LHA@12,33$ RWE@12,50$ UN01@13$
Closed all positions at 22,80$, 20,25$ and 23,17$ respectively.
Here i figured i would just let loose for now and liquidate these positions. For the moment they all seem topped out and with elections coming up in Germany i figured: Take the money and run!
Will be doing some further charting on these in the future...