easyJet (LON: EZJ) share price broke below the 428p key support level on Thursday. The shares of the low-cost carrier continued to fall by another 2.74% on Friday. The shares were trading at 412p at Friday’s close.
On the other hand, the FTSE100, which is the index for the top 100 companies listed on the London Stock Exchange, closed 0.62% higher on Friday. This recovery can be attributed to a recovery in UK equities. However, this bullish sentiment was not reflected in easyJet share price.
easyJet Swings In Profit In Q3
easyJet announced a £203 million pre-tax profit for the three months till June 2023, as compared to a loss of £114 million in the previous year. The economical British carrier also announced a 7% passenger growth, which contributed to a 30% increase in its quarterly revenue.
The CEO of easyJet, Johan Lundgren, listed the recovery in the demand for air travel along with the lifting of the traveling restrictions as the reason for the improved financial position. He also shared the company’s intention to increase its passenger capacity by 15% and expected even better results for the next quarter.
easyJet Share Price Remains In A Slump
Since my last price forecast for LON: EZJ, the price has slid by 3.25%, breaking below the 428p support level. easyJet share price forecast is looking very bearish as the bears are constantly gaining momentum.
If the current bearish momentum continues, a test of 403p, which is the 0.618 fib level for support, might be on the cards. There is also the strong possibility of a further 9% correction if the bears break below 403p. To avoid this bearish outlook, the bulls must reclaim 428p support level.
In the meantime, I’ll keep sharing the updated easyJet forecast and my personal trades on my Twitter, where you are welcome to follow me.
