Thomas Cook Group plc (LON:TCG) shares are trading 1.47 pct lower having reached 180.80 by mid-morning in London.
The negative tone to the Thomas Cook share price comes amidst soft market conditions and the formation of two significant technical indicators overnight.
The Tuesday close at 182.80 saw the formation of a bullish Momentum indicator as well as a bearish Triple Moving Average Crossover (4-day 9-day 18-day).
Obviously the formation of both a bullish and bearish indicator leads to confusion, so investors will be left to their own devices as to which one they believe offers the best possible clarity on future direction in the Thomas Cook Group plc (TCG) share price.
Alerting us to the formation of the bullish Momentum indicator are Recognia Inc, who say, "for bullish events, upward momentum has just built up with the latest price now trading higher than the price 10 bars ago."
A healthy price trend tends to exhibit strong momentum, while weakening trends often have decreasing momentum indicating a trend reversal or correction.
Concerning the bearish Triple Moving Average Crossover Recognia warn that this bearish signal indicates that the TCG share price may fall from the close of 182.80.
Commenting further, analysts say:
"The price is generally in an established trend (bullish or bearish) for the time horizon represented by the moving average periods. Moving averages are used to smooth out the volatility or "noise" in the price series, to make it easier to discover the underlying trend.
"By plotting the average price over the last several bars, the line is less "jerky" than plotting the actual prices. In the triple crossover method, a bullish signal is generated when a faster moving average (4 bar) crosses above an intermediate moving average (9 bar), which in turn crosses above a slower moving average (18 bar).
"In this state, the price is likely in an established uptrend. The opposite is true when the 4 bar crosses below the 9 bar which in turn crosses below the 18 bar, triggering a bearish event."