Trainline share price crash on government reform

Trainline shares plunge 23% after government announces a state backed rival Great British Railways

U Turn 1

 

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.

Learn more about trading equities

How to trade with City Index

Follow these easy steps to start trading with City Index today:

  1. Open a City Index account, or log-in if you’re already a customer.
  2. Search for the market you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. Place the trade.


Build your confidence risk free

More from Equities

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.