The EasyJet share price has been in a relatively tight range even as aviation stocks have rebounded. The EZJ stock is trading at 843p, which is slightly below this week’s high of 860p. Other aviation shares like Wizz Air, Ryanair, and IAG have had a relatively strong week.
Aviation industry recovery
This week, companies with exposure to the aviation industry have done relatively well. Indeed, the Rolls-Royce share price has been one of the best performers in the FTSE 100 index this week. This is mostly because the overall fears of the coronavirus pandemic have waned. Also, countries are accelerating their Covid vaccine rollout while Pfizer has received full authorization of its vaccine.
Analysts are optimistic that the company will do well as tourism rebounds. The company expressed hopes of a major rebound when it announced its results recently. It said that it lost about 3.5 million pounds every day in the second quarter. Still, that cash burn was lower than what analysts were expecting. The firm expects that it will fly about 60% of the pre-pandemic level in the third quarter.
As a sign of the strength of the aviation sector, Delta, a large American airliner said that it will increase its orders from Airbus. United Airlines has also increased its order book.
Analysts believe that the EasyJet share price will stage a strong recovery. The consensus average of analysts compiled by MarketBeat shows that the stock will rise to 958p. Indeed, those at Goldman Sachs expect that it will rise to 1,200p while those at Peel Hunt and Barclays see it rising to above 900p.
EasyJet share price forecast
On the daily chart, we see that the EZJ stock found a bottom slightly below the 800p level. It then rose and is currently slightly below the 38.2% Fibonacci retracement level. The stock are also hovering at the 50-day and 25-day weighted moving averages (WMA). It also seems like it is forming a head and shoulders pattern.
Therefore, the stock will likely maintain the bearish trend as bears target the 23.6% retracement at 720p. On the flip side, a move above 850p will invalidate this view.