The easyJet share price is slightly higher this Monday, as the stock continues its gradual climb towards the 548p price mark on the back of optimistic earnings and forward guidance. Last Thursday, the company reported a loss for the six months up to 31 March of 431 million pounds, which was in line with the company’s guidance and represented a lower loss than the 549 million pounds it reported for the same period a year earlier.
Analysts had expected a loss of 462.1 million pounds, meaning that the company’s loss was better than consensus estimates. The reduced losses came from strong revenue performance, which saw easyJet push its revenues 524$ to 1.5 billion pounds. This figure also met analysts’ estimates.
The easyJet share price could also be in the running to improve further as the airline says it expects capacity in the June quarter to be at 90% of its 2019 levels, with the 4th quarter seeing a ramp up to 97% capacity. CEO Johan Lundgren says the airline is in “a good place” to establish resilience for the 2022 summer holiday season.
The easyJet share price climbed more than 4% after this update and is up 1.74% as of writing. The easyJet share price has added 9% after the 10 May update, which predicted the recent drop as a dip-buying opportunity.
The recent advance on the stock follows the completion of the bearish rising wedge’s measured to move at 472.0 (12 May low). The stock is challenging the resistance at 528.8 formed by the 4 May low. If the bulls succeed in uncapping this resistance, the next target would be at 548.8 (29 April low and 12 May high). A further advance brings in 573.6 into the picture (31 March and 19 April highs) before 607.8 forms a potential target to the north.
On the flip side, a rejection of the advance at 528.8 allows the bears to make a move to the south, targeting 501.2 (12 May and 19 May highs in role reversal). If this support level is breached, 472.0 becomes the next target in line. Below this level, additional targets to the south are seen at 431.6 (8 March low) and 395.4.
This post was last modified on May 23, 2022, 10:16 BST 10:16