The EasyJet share price has gone nowhere recently, even as demand for its services rises. The stock is trading at 500p, which is a few points above is lowest level this month. The shares have declined by more than 20% this year. However, it has outperformed other airline stocks like Ryanair and IAG.
EasyJet earnings preview
EasyJet and other airline companies have seen strong demand for their services as countries end their vaccine restrictions in the past few months. In its most recent update, the budget airline said it had increased its capacity to pre-pandemic levels. As a result, the company said that its losses for the first half of the month would be between 535 million and 565 million pounds.
While capacity has increased, EasyJet and other airlines are still battling the rising jet fuel prices. Recent data show that jet fuel has risen by double digits in the past few months because of the rising oil prices globally. As a result, the firm, which rejected an acquisition by Wizz Air, has been forced to boost its prices.
The results will come a few days after Ryanair published relatively strong results. The company said that its loss for the year to March 31st was smaller than expected at 1.02 billion euros. However, in a statement, the company’s CEO said that the firm had been forced to hike prices as demand remained at elevated levels.
EasyJet share price forecast
On the 4H chart, we see that the EZJ share price has moved sideways in the past few days. Last week, the stock managed to move below the ascending channel shown in black. It has moved slightly below the 25-day moving average, while the money flow index (MFI) has formed a bullish divergence pattern. It has risen above the neutral level of 50.
Therefore, the EasyJet stock price outlook is neutral with a bearish bias. If this happens, the next key support level to watch will be at 450p. On the flip side, a move above the resistance at 523p will stop the bearish outlook.
