EasyJet (LON: EZJ) share price has been in a tailspin since the release of its latest earnings report. In the past seven days, the stock has been tanking very hard, losing nearly 10% of its value. The latest analysis reveals that there is still a possible 5.75% downside for the shares from here.
The British stock market showed a mixed price action during the last trading session of the week. The benchmark FTSE 100 index remained sideways during the first half of the day. However, the index gained 55 points in the second half of trading. EasyJet shares were also slightly up today after rising by 0.12%.
EasyJet Shares Tank Despite Narrowed Losses
The shares of the British low-cost carrier have been trading within the 456p-522p range since the start of 2023. The shares have attempted to break out of this range multiple times but failed. Last week, the stock tried to break out once again but faced another rejection.
The ongoing negative price action in easyJet share price can be attributed to its latest earnings report. The six months report showed that the pre-tax losses were 25% lower than the same period last year. The company CEO is expecting the company to operate at its pre-pandemic levels by this summer.
EasyJet Share Price May Drop To 458p
The analysis of the LON: EZJ chart shows that the price is currently retesting the range mid after facing rejection from the range highs last week. If the price fails to bounce soon, it may drop further to 458p, where lies the range lows and major support.
The only way to avoid this bearish EasyJet share price forecast is for the shares to break above 522p. This won’t be easy considering the high-interest rates environment in the UK. Furthermore, if the UK economy enters a recession, air travel may get significantly decreased.
I’ll keep sharing my easyJet and other trade setups in my free Telegram group, which you’re welcome to join.