MANCHESTER UK, 30 MAY 2019: Easyjet Airbus A320 flight U21912 from Palma de Mallorca lands on runway 23R at Manchaester Airport.
Today is the fourth consecutive trading session the EasyJet share price is bullish in the markets. Already up by a percentage point, the share price looks poised to continue rising throughout the session, and there is a high likelihood that we will see the prices close higher.
Despite the recent push to the upside, EasyJet’s share price continues to be affected by strong fundamentals in the market that are not currently in its favour. One of these fundamentals is flight delays. Since late last month, there have been reports that the company would see more than 11,000 of its flights cancelled. However, the problem is not as severe as at the beginning of the month.
The company has also taken major steps in addressing the problem, including the recent resignation of its COO, who had failed to address the delays. In addition, according to recent reports, EasyJet has also indicated it would allow passengers to drop bags off the night before travel to ease summer chaos. These steps look to have addressed major concerns of investors, and with an expected uptick in passengers, EasyJet’s share price has come to life again.
The chart below shows a price resurgence that started four days ago. The bullish push has resulted in EasyJet’s share price surging by 9%. Today, the trend is also looking likely to continue with the bullish trend, with prices already up by a percentage point.
The chart also shows that the current session has been able to break July’s price highs. It also has enough momentum; therefore, there is a high likelihood of the prices continuing to rise throughout the session. This is why I expect EasyJet’s share price to trade above the 419p price level in the next few trading sessions.
The current bullish trend, combined with fundamental factors such as improving operations of the company, indicates we are in a trend reversal. Therefore, I expect the upward move to proceed with momentum and hit the 419p supply level. However, should the price retreat back to trade at 338p, my analysis will be invalidated. At that level, we will be already in a bear market.
This post was last modified on %s = human-readable time difference 15:54