EasyJet (LON: EZJ) share price is having a very volatile week. After a 4.69% increase on Monday, the shares of EasyJet Airlines opened higher on Tuesday. At the time of writing, the stock is changing hands at 517.4p after sliding down from the daily high of 533p. Our analysis shows that the ongoing pullback is not unexpected at all.
On Tuesday, the benchmark of UK equities, the FTSE 100 index, remained sideways after showing minor gains in its last trading session. Nevertheless, EasyJet shares kept trading 1.29% higher than their previous close. IAG shares also remained green as they were up 0.63% for the day.
EasyJet Expects Pretax Profits Amid Strong Summer Bookings
According to the Davy Research analysts, EasyJet Airlines is expected to report a headline pretax loss in line with the analyst expectations. However, for FY2023, the low-cost carrier is likely to swing to pretax profit above consensus. The reason behind this positive expectation is the strong booking momentum into the summer. Due to this reason, Easyjet share price has been performing well since the start of this year.
In other news, the budget carrier is keeping ticket prices high despite a decrease in fuel prices. This is because the airline is trying to catch up with its earnings which drastically decreased in the past few years due to the global lockdown.
EasyJet Share Price Retests Major Resistance
Technical analysis of LON: EZJ chart shows a prolonged sideways price action within the 457p-522p range since January 2023. The top of this range has resulted in multiple rejections for the stock. During today’s trading session, the shares pierced through this resistance and made a new YTD high of 533p. For a proper reclaim, the price needs to gain strength above 522p in the coming days.
A break above 522p will make the EasyJet share price forecast bullish, with the first major target being 546.2p. This will also put the key psychological level of 600p in bulls’ reach. There is also a likelihood of rejection from the current level. In case of a daily closure below 522p, shares may do below 500p once again.
In the meantime, I’ll keep sharing updated outlook on LON: EZJ in my free Telegram group that you’re welcome to join.
