Easyjet shares are having another bad day as the FTSE 100 index has dipped to its lowest level in 6 weeks. On Friday, shares of major UK companies tumbled, and LON: EZJ also opened lower than its previous close. At press time, Easyjet share price is 503.4p, which is 4.5% below its weekly high.
Global airlines are having a solid quarter as air travel is coming back to normal. The past couple of years were brutal for even the industry giants like Easyjet Airlines as the company struggled to keep both ends meet. However, Easyjet share price has shown a remarkable recovery in 2023 and surged above GBX 500 level for the first time in 7 months.
Despite a strong start to the year, LON: EZJ has failed to gain any strength above GBX 520. Consequently, the analysts are divided on its outlook for the next 12 months. On one hand, financial giant Deutsche is calling Easyjet shares a buy with a target of GBX 580 in sight.
While on the other hand, 12 brokerages on Bloomberg.com have labelled it a ‘hold’. The six brokers who have listed their recommendations are also equally divided between ‘buy’ and ‘sell. Nonetheless, considering the overall thesis, Easyjet Airlines appears to be on track for a strong 2023.
Sometimes key psychological levels play a very critical role in the price action of shares. The 500 level is also acting the same for the Easyjet share price. Since the start of the year, the price has broken above this level multiple times but lost buyers’ attention on each occasion.
At the time of writing, LON: EZJ is trading a few points above GBX 500. In the coming days, I expect the price to retest at this level. The outcome of this retest will decide the next move. If the price gains acceptance below 500p, then a retest of February lows of 457p will be very likely.
This post was last modified on Mar 10, 2023, 12:59 GMT 12:59