EasyJet (LON: EZJ) share price is on its way to meet my price target of 428p. The ongoing downward push was accurately predicted in my previous analysis. The shares of the low-cost carrier have also broken below their 200-day moving average, which is a bearish sign.
The FTSE 100 index continued its decline on Tuesday. At press time, the index stood at 7,511 points after sliding by 0.56%. This puts the overall weekly plunge of the benchmark index at 0.58%. Easyjet shares also fell 0.33% today and changed hands at 451.3 at the time of writing.
Why Is LON: EZJ Falling?
As mentioned in my last forecast, easyJet is facing headwinds due to the extreme weather conditions in its top travel destination. The British carrier provides low-cost flights to European travel destinations, which racks in most of its revenue during summer.
However, the recent wildfires in Greece are keeping most of the tourists at bay. easyJet share price continues to experience strong selling pressure despite posting a pre-tax profit of £114 million in Q2. Let’s analyze its chart to understand the ongoing price action.
EasyJet Share Price Forecast Flips Bearish
My LON: EZJ price target of 428p is still valid. The reason lies in the fact that the price has broken below the long-term trading range and now accumulating below 200 MA. If the shares don’t break above the 452.7 level soon, then the first major target for the bears would be the 428p level.
To avoid this bearish outlook, easyJet share price needs to break above the 457.6p level. This would be a single of good strength due to the reclaim of the range lows. The upcoming CPI data of the US & UK may affect the price action in the coming days.
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