Air France Profit Warning; CAC 40 In Focus
AvaTrade | Oct 08, 2014 05:31AM ET
Air France (PARIS:AIRF) is going to find it difficult to have any love among Bulls but there is plenty of that amid bears. The strikes have taken a big toll and it may have a devastating impact on its future earning and this concept is not sitting well with investors who are offloading this from their books.
Given that the industry is extremely competitive, strikes like this makes things even more difficult and this could result in fall in revenue and this may be well over 350 million euros. An event like this obviously effect consumer’s behaviour for any future bookings and for Air France that is showing a negative figure of 1-2%. Given that we already have fragile growth in Europe which is impacting the overall demand, the airline has some serious head winds to face.
CAC 40 is trading below its both downward trend line on a 240 minute time frame. The price has also pierced the Bollinger band and this piercing happened at an important level of support. This has pushed the price back, although it is still trading far enough from its mean. The stock is also trading below the 50 day (shown in yellow) and the 100 day (shown in red) moving average and this confirms that the bias is still towards the downside and as long as the price is trading below them, the bias towards the downside.
The RSI has not made a lower low while the price has and it has bounced back up from its trend line which is in line with the Bollinger band signal from the price chart.
Support Zone
4168-4149 Minor Support
4116-4099 Major Support
Resistance Zone
4330-4314 Minor Support
4432-4414 Major Support
Disclosure & Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam
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