Trifast share price (LON: TRI) started this week with a massive collapse due to the sudden exit of its CEO. The price opened the week 39% below its last week’s closing. Although the price has been crawling back up since then, it still appears to be a dead-cat bounce.
Why Is TRI Share Price Tumbling?
According to the latest Trifast news, the long-term CEO Mark Belton resigned on Saturday. The outgoing executive left after serving the company for 23 years. However, this isn’t the only news behind the stock crash, Trifast has also warned its investors of a lower-than-expected annual profit.
As per the British fastenings firm, one of its Asian clients is destocking significantly, affecting its operating profit. Consequently, the company estimates a pretax profit of 9 million pounds in the year ending on March 31. This is more than 35% below the market expectation of GBP 14.3 million.
Many investors have jumped off the ship leaving the LON: TRI tumbling. Trifast share price is still trading 31% below its last week’s high of 93.6p. Considering the bearish price action and the negative news, it is better to wait for the dust to settle.
Trifast Share Daily Chart
On the daily timeframe, LON: TRI chart presents a very bearish outlook. The price broke below the November 2022 low of 49.6p on Monday. Although it has recovered significantly since then, I’m still smelling a dead-cat bounce. At the time of writing, TRI is trading at 63.4p, which is 35% above the Monday lows.
Technical analysis of the daily chart shows that the price is likely to retest the November low of 49.6p once again. The result of this retest will decide the next direction of Trifast share price. The recent rejection from the 89p level has made things even more bearish as the price broke below 200-day MA.
The following chart shows the key levels on the Trifast daily chart. As long as the price remains below 89p, my price outlook for Trifast stock will remain bearish.