EasyJet (LON: EZJ) share price is gaining strength after reclaiming a key level on its chart. The latest analysis reveals that there is a potential 4% upside for the stock of the low-cost carrier. The shares are currently 7.65% up from June lows.
The UK shares have shown a strong rebound this week as the benchmark FTSE 100 index surged above 7,450 points level. On Thursday, the index extended its gains by another 44 points. The easyJet share price also increased by 2.07% due to increased buying pressure.
Deutsche Remains Bullish On LON: EZJ
According to Deutsche Bank, European airlines are showing a weakness in pricing that might affect their shares in the coming months. In 2024, the investment giant anticipates a 6% YoY decline in fares. As a result, the broker has downgraded the ratings of Air France and IAG from ‘buy’ to ‘hold’.
However, Deutsche kept its ‘buy’ rating on easyJet share price due to the company’s strong balance sheet. According to the investment bank, due to strong financials and balanced capacity growth, the impact of softer pricing could be limited on easyJet stock.
EasyJet Share Price Forecast July 2023
I’ve repeatedly mentioned in my previous LON: EZJ forecasts the significance of the 488p level. Finally, the shares have broken above this range mid which was acting as a resistance, and are showing strength. This puts the retest of the 521p range high on the cards for the coming weeks.
However, this easyJet share price forecast will be invalidated if the shares breakdown below 488p. In this scenario, a retest of the range lows will be the most likely scenario. The range low currently lies at 457p and may act as a strong support if the price heads for its retest.
In the meantime, I’ll keep sharing updated easyJet analysis and my personal trades on my Twitter where you are welcome to follow me.
