$Web Travel Group Ltd (WEB.AU)$ shares plummeted 32.01% on Monday, with trading volume expanding to A$76.36 million. Web Travel has declined 30.39% in the past week, with a cumulative loss of 34.54% year-to-date.

Web Travel's technical analysis chart

Technical Analysis

• Support: A$4.74

• Resistance: A$7.92

• Price range A$4.74 to A$7.92: There is a significant amount of trapped capital within the trading range, with strong selling pressure. The stock price began to decline near the resistance level of A$7.92, and the downward trend is apparent. Previously, the stock price repeatedly touched the support level of A$4.74, forming a certain level of support. Going forward, it is crucial to closely monitor whether the resistance at A$7.92 can be effectively breached, as well as whether the support at A$4.74 holds firm.

Market News

Web Travel provided a preliminary update on the 1H25 financial results of its WebBeds business for the 6 months ending 30 September 2024.

WebBeds’ TTV/revenue margins have been impacted by the collapse of FTI Group, the Paris Olympics and the European Football Championship. Subsequent to the AGM update, European margins remained subdued, and overall margins were further impacted by customer financial incentive agreements (overrides) in place, which are under review. As a result, 1H25 preliminary TTV/revenue margins are now expected to be c.6.4%, down from c.7% as indicated at the AGM. The company has adjusted its preliminary EBITDA margins for WebBeds in the first half of FY 2025 to around 44%, marking a reduction from the previously guided 52%.

The company’s 1H25 results are scheduled to be released on Wednesday, 20th November 2024, where further details will be provided.

Overall Analysis

Fundamentally, focus on the company's performance and operational status. Technically, pay attention to whether the support levels hold and if the resistance levels can be effectively breached.

In this scenario, investors should adopt a cautious strategy, setting stop-loss points to manage risk and maintaining ongoing vigilance regarding company developments and market conditions.

Source: Web Travel