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.
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