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EasyJet Share Price Dips Again, But Losses May Be Capped. Here’s Why

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Written By: Eno Ikenna Eteng
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    Summary:
  • The EasyJet share price is down for a second day, but losses may be capped by new travel rules that ease holiday travel in Europe.

The EasyJet share price failed to hold on to early gains in the session and has declined 1.80% on the day. This comes as the uncertainties regarding the impact of the 5G mobile equipment on aircraft navigation systems mount.

Earlier on Wednesday, the UK aviation regulators sent out a safety advisory to all UK airlines, warning them of the risks posed to UK aircraft by the 5G equipment being installed at US airports.

However, losses may be capped as an easing of travel rules are applied across Europe. The new rules ease restrictions to holiday travel for vaccinated travellers, which is a plus to EasyJet’s summer holiday flight itinerary.

EasyJet Share Price Outlook

The EasyJet share price’s intraday decline has put it on the path towards 607.8, which is the initial support. If this support gives way, 573.6 becomes the new target. Below this level, 548.8 and 508.8 form additional targets to the south, with the potential for a pitstop at 530.4 (29 November high and 22 December 2021 low).

On the other hand, a bounce on 607.8 could put the stock in a good position to recover the uptrend. However, this move must be followed by a break of 655.8, putting 684.8 forward as a new target to the north. The previous double tops at 720.0 and the 739.4 resistance are additional targets that only become viable if 684.8 is uncapped by the bulls.

EasyJet: Daily Chart

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This post was last modified on Jan 19, 2022, 16:19 GMT 16:19

Written By: Eno Ikenna Eteng

Eno's work as a technical analyst and author since 2009 is well recognized in the industry and on several freelance platforms. He is also a member of the prestigious UK Society of Technical Analysts and a top-ranked participant in the Basic Investment Banking and Asset Management simulations with Amplify Trading.

Published by
Written By: Eno Ikenna Eteng