The EasyJet share price has made a strong comeback in the past few days. The EZJ stock rose by more than 14% on Tuesday, becoming one of the best-performing stock in the FTSE 250. Other airline shares like IAG, Wizz Air, and Rolls-Royce also made a strong rebound. Globally, shares of companies like United and Southwest also surged.
The aviation industry has been hammered by the ongoing Omicron pandemic. For example, the US Global Jets ETF has declined by more than 16% from the highest level in November. This trend is mostly because many airlines have reported a fall in bookings as customers remain concerned about the variant.
At the same time, governments are coming up with plans to cushion their citizens from the pandemic. For example, in Germany, the government has announced new restrictions for UK travellers. They will need to have a negative PCR test and then quarantine.
Still, some positive signs have pushed the EasyJet share price higher. Recent data suggest that the Omicron variant is not as severe as the other variants. Also, studies by Moderna and Pfizer show that the vaccines are offering some protection. Also, there are signs that governments will not impose severe restrictions on travelling.
EasyJet share price forecast
The four-hour chart shows that the EZJ share price has done well in the past two days. A closer look shows that it formed what looks like a double-bottom pattern that is shown in blue. Its upper chin is at around 570p. In price action analysis, this pattern is usually a bullish signal. It has also risen above the 25-day and 50-day moving averages.
Therefore, there is a likelihood that the stock will keep rising in the coming days as bulls target the key resistance at 571p. Still, because of the fluidity of the Omicron situation, you should expect some volatility in the near term.