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EasyJet Share Price Stumbles Following 50 Percent Surge
For the fourth consecutive trading session now, (LON: EZJ) EasyJet’s share price is down, with intraday trading pointing to a possible continued drop for the remainder of the session. The drop comes amidst reports of worsening market conditions in the UK, which has been characterized by a 41-year record for inflation, which has driven most consumers to cut down their spending.
However, despite the drop, many investors and experts are still considering the EasyJet share price as a buy following its performance in the past month. Starting on October 13, the EasyJet share price started an aggressive bullish push that saw its price rise from trading at 271p price level to scaling above the 420 price level.
The bullish push was a result of a number of factors, including the improving aviation industry. Multiple reports during the bullish push period indicated airlines such as EasyJet were looking at hitting and surpassing their pre-pandemic levels. Therefore, investors’ sentiments at the time were positive for the company, which saw it continue pushing high.
There were also rumours that EasyJet was on the verge of being acquired by IAG, which resulted in its share price soaring. Although these rumours have all but faded, they were able to boost the airline company’s share price to set a new price high on their way to breaking the 400p price level.
EasyJet (LON: EZJ) Share Price Forecast
The EasyJet share price is currently on its fourth consecutive bearish session. The chart below also shows the prices have recently broken below the 400p price level.
However, based on long-term price action, the recent EasyJet bearish trend is more likely a market correction and not a reversal. Therefore, I expect the prices to recover in the next few trading seasons and possibly trade above the 430p price level. There is a high likelihood that the long-term bullish trend may push EasyJet’s share price to trade above the 500p price level before the end of the year. However, a drop below 350p will invalidate my bullish analysis.
Kelvin Maina is a computer science graduate who has a passion for cryptocurrencies. In 2017, he became professional crypto and Forex technical analyst for CryptoPolitan and in 2022, he joined InvestingCube.com.
United States of America
