Tui AG (LSE - "TUI") has dropped 14% today on a report that they will be raising €1.1bn through a capital raise. Like EasyJet did a few weeks back, this could provide a good buying opportunity as Tui are one of the very few package holiday airlines left in Europe.

From a technical aspect, the stock still holds the key horizontal support at £2.50-£2.60 and until this breaks buying on dips could possibly work. If Tui broke this support then it could easily fall to £2. Looking to the upside initial targets are £3.39 followed by £3.50 and then £3.80. RSI reads 39 with MACD trending slightly negative.

We did originally post a video on youtube about Tui which you can find here. This outlook of rangebound trading still stands but this drop could provide a potential buying opportunity for a swing trade or investment. It does carry some risk though as a capital raise could cause investors to flee the stock throughout next week for another airline or asset.