Trainline share price crash on government reform
Fiona Cincotta May 20, 2021 6:39 PM
Trainline shares plunge 23% after government announces a state backed rival Great British Railways
Trainline share price has plunged in early trade after the British government announced plans to revamp the UK’s rail network.
The plans include the creation of a website and app called Great British Railways. This would be in direct competition with Trainline for business and is likely to erode Trainline’s dominant position in the UK.
Whilst Trainline’s current commission rates run until 2024, investors are questioning how Trainline will fit into these new plans beyond there.
Where next for Trainline share price?
Trainline share price has tanked 23% on the news. It has dropped out of the horizontal channel that it has been trading in for the last 6 months.
The price tumbled to a low of 288p but has recovered some ground to trade at 330p. With the RSI in overbought territory we could see some consolidation here, but the overall picture is bearish.
Sellers could look to target 250p November’s low. Any recovery would need to retake 375p the lower band of the holding pattern.
How to trade with City Index
Follow these easy steps to start trading with City Index today:
- Open a City Index account, or log-in if you’re already a customer.
- Search for the market you want to trade in our award-winning platform.
- Choose your position and size, and your stop and limit levels.
- Place the trade.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.