The EasyJet share price slid below 800p on Friday to a low of 786p before recovering the big figure. But, EZJ now faces the threat of a looming death cross. And the bearish technical omen, that should appear in the next few days, is the last thing that EasyJet shareholders need right now.
The aviation industry has faced considerable headwinds over the last year. Although there were signs that the worst was over for the struggling travel and tourism industry, the delta-variant covid strain has dashed any hope of a v-shaped recovery for airlines. As a result, EZJ has given back most of the gains it made in the last two weeks of July and is down 6.2% this month and around 4% since the start of the year. However, indications suggest the EasyJet share price may get even cheaper soon.
EZJ Price forecast
The daily candle chart shows EZJ has reversed sharply lower this month. As a result, the share price is below the significant moving averages. Furthermore, the 50-day at 886.50p is about to cross below the 200-day at 883.20p. This bearish crossover is considered a death-cross and signals deteriorating momentum.
Should that prove true, a logical target for the bears is July’s 753p low, around 6.5% below the current level. However, a deeper correction could take the price back to December 2020s low at 670.40p.
The bearish view will stay in place as long as EZJ remains below the 200 DMA. However, should the price recover the average, the negative view becomes invalid. In this instance, the 100 DMA at 940p looks like an achievable target for the bulls.
EasyJet Share Price Chart (Daily)
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