Q: Hi 5i,
Thomson Reuters (TRI) has recently displayed several technical signs that could indicate a potential bottom, including bullish RSI divergence, improving MACD momentum, increasing rebound volume, and a possible inverse head and shoulders pattern around the 123–124 level.
Considering both the technical signals and fundamental strength, would you consider the probability of a near-term base formation to be high?
What specific fundamental or technical conditions would you need to see to confirm that TRI is forming a sustainable bottom?
Many thanks for the advise.
Thomson Reuters (TRI) has recently displayed several technical signs that could indicate a potential bottom, including bullish RSI divergence, improving MACD momentum, increasing rebound volume, and a possible inverse head and shoulders pattern around the 123–124 level.
Considering both the technical signals and fundamental strength, would you consider the probability of a near-term base formation to be high?
What specific fundamental or technical conditions would you need to see to confirm that TRI is forming a sustainable bottom?
Many thanks for the advise.
5i Research Answer:
The recent bounce in shares of TRI provides some comfort and a general tempering in the degree of volaitlity in the shares is helpful. We do think the worst of the AI/SaaS related selloff is over. It does not mean that all names will bounce from here, but we many names are lookig like they are finding support, TRI included.
We think that the shares reacting positively to their AI tool announcement is a good sign and shows markets are becoming a bit more discerning at the company level.