EasyJet share price (LON: EZJ) is on the rise once again after a major pullback in February. During the last 4 trading sessions, the price has gained more than 9%. Today the price opened slightly below yesterday’s closing but still retained its strength.
On Tuesday, FTSE 100 slid by 0.18% till press time. This comes as no surprise, as the top US indices also tanked yesterday. The S&P 500 index and Nasdaq 100 index closed at -1.53% and -1.22, respectively. In the next few weeks, I expect the volatility to remain very high.
Easyjet Customers Hold €110 m Worth Of Vouchers
During the lockdown, many British airlines issued vouchers to their clients against the cancelled flights. These vouchers are fully redeemable but with an expiry. According to recent reports, IAG and EasyJet Airlines together have €600 million in unclaimed vouchers. Out of these, Easyjet customers hold €110 million worth of vouchers.
It is estimated that many of these vouchers will likely remain unclaimed till they expire due to various reasons. This will mean a decrease in the firms’ liability and improve their cash flow. Recently an EasyJet flight came into the news as the pilot took a midflight loop to let passengers witness northern lights.
In the current month, UK equities will remain highly volatile price action as the US markets prepare for another rate hike. A 50 bps hike by US Federal Reserve can drastically reduce the liquidity in the global speculative markets. It will be tough for global equities to flourish amid a surging DXY index.
Easyjet Share Price Can Surge Above 600p
With the help of technical analysis, we can discuss the bullish and bearish scenarios for the EasyJet share chart. The following chart shows that the price has formed a rising wedge pattern on the daily chart. Although these patterns are generally bearish but only in case of a breakdown.
On a higher timeframe, EasyJet share price is still maintaining its uptrend. Within the next few days, the price will be retesting the January high of 522p. This will be a key retest to watch as this is a reclaim of this level that can unlock a huge upside. A breakout from this level may result in a push towards the 600p level. However, in case of a falling wedge breakdown, the next major support lies at 428p.
