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EasyJet Share Price Targets 500p After A Strong Rebound

MANCHESTER UK, 30 MAY 2019: Easyjet Airbus A320 flight U21912 from Palma de Mallorca lands on runway 23R at Manchaester Airport.

EasyJet (LON: EZJ) share price has started the month with a strong positive price action. The shares of the British low-cost carrier have experienced a strong bounce from their May 2023 lows. The technical analysis reveals that the stock has more upside if it breaks above a key level on the chart.

The British stock market showed a mixed sentiment on Thursday. The benchmark FTSE 100 index turned red after sliding 0.16% and lost 12 points. However, the easyJet shares showed a positive price action and were up 0.53% for the day.

Moody’s Improves Its LON: EZJ Outlook

As per the most recent EasyJet news, the top rating agency Moody’s has improved the outlook of easyJet stock. Moody’s revised the company’s outlook from stable to positive while affirming its Baa3 long-term issuer. Just a few weeks ago, the private wealth management firm Bernstein revised the easyJet share price target to 500p from its previous figure of 550p.

The release of the latest earnings report was the biggest headwind for EasyJet. The six months report showed that the pre-tax losses were 25% lower than during the same period last year. The company CEO expects the company to operate at its pre-pandemic levels by this summer.

EasyJet Share Price Retests 200 MA

Technical analysis of the LON: EZJ chart shows that the price is currently the 200-day moving average which lies close to 495p. There is a higher likelihood of a pullback from this level. Just above this level, there lies the major psychological level of 500p.

EasyJet share price forecast of 522p will be valid once the stock breaks above 500p. 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 significantly decrease. This may further increase the headwinds for the airline operators like EasyJet. The next week’s FOMC meeting in the US will also keep the prices in check in the coming days.

I’ll keep sharing my easyJet and other trade setups in my free Telegram group, which you’re welcome to join.

easyJet share price chart
LON: EZJ Chart