The EasyJet share price failed to hold on to early gains in the session and has declined 1.80% on the day. This comes as the uncertainties regarding the impact of the 5G mobile equipment on aircraft navigation systems mount.
Earlier on Wednesday, the UK aviation regulators sent out a safety advisory to all UK airlines, warning them of the risks posed to UK aircraft by the 5G equipment being installed at US airports.
However, losses may be capped as an easing of travel rules are applied across Europe. The new rules ease restrictions to holiday travel for vaccinated travellers, which is a plus to EasyJet’s summer holiday flight itinerary.
EasyJet Share Price Outlook
The EasyJet share price’s intraday decline has put it on the path towards 607.8, which is the initial support. If this support gives way, 573.6 becomes the new target. Below this level, 548.8 and 508.8 form additional targets to the south, with the potential for a pitstop at 530.4 (29 November high and 22 December 2021 low).
On the other hand, a bounce on 607.8 could put the stock in a good position to recover the uptrend. However, this move must be followed by a break of 655.8, putting 684.8 forward as a new target to the north. The previous double tops at 720.0 and the 739.4 resistance are additional targets that only become viable if 684.8 is uncapped by the bulls.