easyJet (LON: EZJ) share price has been consolidating after a colossal 10% plunge at the end of July. The share price for the low-cost carrier tried to break above 200 MA last week but to no avail. The price currently stands at 442.6p, 2.72% below the last week’s high.
The FTSE100 index has been facing tailwinds since the announcement of UK wage data. The benchmark index has fallen 96 points. A 7.8% wage increase was announced for the second quarter, beating the analyst’s expectations of 7.4%. If the index drops, British stocks like easyJet may experience increased selling pressure. At press time, easyJet stock was trading at 443.8p after declining by 0.46%.
easyJet Cancels Flights Amid Air Traffic Control Shortage
European air carriers are facing a huge hurdle amid the shortage of air traffic controllers in the summer. The after-effects of the layoffs and recruitment issues during covid 19 are now showing despite the slow and steady recovery in the airline sector. This led to a 37% increase in delayed flights, while easyJet had to cancel over 1100 flights this season over the shortage issue.
In other news, Stifel upgraded the low-cost carrier to “buy” from “hold”, setting a price target from £5.5 to £6.5. This means that the financial company sees potential for growth in easyJet share price. It listed increased demand for air travel, cost control, and cheap fuel price as the reason for the upgrade.
easyJet Share Price Heads To Retest 428p
My overall analysis remains bearish for LON: EZJ. The price broke below the long-term range and has been consolidating under it for weeks now. The price is currently trading 2.71% below the range lows.
The bearish outlook I mentioned in my previous analysis still stands. If the price reaches 428p, the bears might come into play, targeting more downside till 321p. For the bulls to stand a chance in this scenario, reclaiming 457p as support is extremely critical.
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.
