easyJet (LON: EZJ) share price seems to be in control of the bears as the price has broken below the key support level of 428p. I already predicted this move in my previous analysis. The low-cost carrier’s shares are now trading at 423.4p and seem on track to make a new monthly low.
The FTSE100 opened the day in the green and is 0.27% up for the day. This suggests there is finally some recovery in British stocks. However, this bullish momentum did not affect easyJet share price, as it was down 1.27% at press time.
The government of Italy has announced “a not more than 200% higher” than the average price of the flights to the island. This decision has been heavily criticized by several airline companies, calling it illegal and unfair. This decision by Italy may lead to a loss of revenue for airlines as Sicily and Sardina are a popular tourist destinations.
Another negative news for European airlines is the Spanish government’s investigation into airlines that charge more for tickets than the advertised price. A one million euro fine might be imposed on airlines that undue overcharge the passengers. easyJet share price is changing hands 20% below its yearly peak right now.
In my last forecast for LON: EZJ, I accurately predicted the 428p price target. The price not only hit my bearish target but is now trading below it, at 423p. It is very critical for the bulls to reclaim the 457p level. Otherwise, the easyJet share price forecast would remain bearish.
If the bears keep the current momentum going, another 24% correction is expected all the way to the 320p support level. As a sign of some strength, the bulls first need to reclaim the 428p level as time is running out.
In the meantime, I’ll keep sharing the updated easyJet forecast and my personal trades on my Twitter, where you are welcome to follow me.
This post was last modified on Aug 21, 2023, 16:12 BST 16:12