EasyJet (LON: EZJ) share price has finally met my price target, which I predicted on June 23. After remaining range-bound for months, the shares have broken below the range and now consolidating. Technical analysis suggests it might not be a good idea to buy in a hurry, and it is better to let the price action develop.
On Wednesday, easyJet shares opened lower, but the buyers stepped in and turned the candle green. The shares closed after a 0.20% rebound from their lowest level in the last 6 months. On Thursday, the stock of the low-cost carrier opened higher but showed minor losses in the first hour of trading.
LON: EZJ Gets Headwinds From Greek Wildfires
According to the most recent easyJet news, the company remains confident about strong growth during this summer. The British low-cost carrier has forecasted record profits this summer amid high travel demand and increased ticket prices. The firm’s pre-tax profit for the three months ending in June was £114 million above its last year’s figure.
Despite all the bullish profit forecast, easyJet share price has been in a tailspin since last week. The heatwaves and wildfires in Rhodes and Corfu have caused panic among investors. Due to extreme weather in the region, the holiday plans of many tourists might get canceled. This would mean a low demand for air travel this summer.
EasyJet Share Price Attempts To Reclaim 200 MA
When I gave my price target of 457p for LON: EZJ last month, I was laughed at by many analysts. I didn’t just pull that prediction out of my hat. It was purely based on technical analysis. The same technical analysis suggests that the bulls need to gain strength above 200 MA or the things may get really ugly from here.
EasyJet share price forecast will flip very bearish if the shares gain acceptance below the 457p level. In such a case, 427p would be the first target for the bears. Considering the oversold condition of 4H RSI, at least some bounce can be expected from this level.
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