The Easyjet share price could be in for a bumpy ride next week after the U.K announced Portugal’s removal from its safe travel list.
Easyjet (EZJ) closed Friday’s session at 934p, lower by -25.2p (-2.63%).
The U.K’s tourism industry was dealt another blow on Thursday after Britain lowered Portugal’s travel status from green to amber. Since May, the U.K has been operating a traffic-light classification system for returning tourists.
Presently, all travelers returning to the U.K a required to undergo PCR testing. However, the quarantine restrictions vary depending on the classification.
Tourists returning from red-listed countries must quarantine for 10 days in an approved hotel. An amber rating allows home quarantine for the same period, whilst a green classification indicates no quarantine.
The Government decided to lower Portugal’s travel status after a new covid variant was discovered in the popular holiday destination.
This couldn’t come at a worse time for the EasyJet share price, which will likely face deeper declines next week.
EZJ Price Outlook
We can see on the daily chart the price has broken down through a long-term trend line. The trend from November 2020 has been a good level of support for the last 6 months and considered, and in my eyes, an important level.
Moreover, for the first time in 2020, EZJ has closed below the 100 days moving average at 934.40p.
Therefore the price is likely to continue lower when trading opens tomorrow. The first target on the downside is the 24th of March low at 885.20p. However, given the circumstances, a drop to the psychological 800p level cannot be ruled out.
A close above the trend line at 990p will cancel this bearish view.