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...
ENTRY: 10.72 EUR
TARGET: 7.30 EUR (+30%)
STOP: 13.09 EUR
1.) The LHA share price got rejected at the current resistance line (12.80 EUR)
2.) I see the actual fair price at the 2021 POC (9.00 EUR)
3.) In response to the airline's poor earnings forecast, there could be another relapse into the resistance zone. (7.00 EUR)
4.) The company has recently been...
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...
After receiving a bailout from the German government, Lufthansa proceeded to rally but was not able to take out resistance and has thus retraced to the lower 8-9 zone
Restrictions have been lowered and travel within Europe is now picking up again; with the Business travelers being one of the main customer groups for Lufthansa
Budget airlines are set to...
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 top trendline has been broken, it seems that the a new rally has started and the idea is to go long.
Lufthansa surged 7.5% as its supervisory board approved a 9 billion euro ($10 billion) government bailout for the airline, driving Frankfurt-listed shares (GDAXI) up 2.6% to its peak since March 5.
Looks like LHA is about to break up in short term view. It is not clear yet if the financial support of the german government will give enough boost to break above 12 €. This would clear the way for a strong up move.
The corona virus has hit the aviation industry hard because the outbreak of the pandemic was unforeseeable. Lufthansa is at the bottom of the DAX when it comes to the share price development since the beginning of the year. The founding member of Germany's leading index has already lost more than 50 % of its value and could leave the first stock exchange league on...