EasyJet (LON: AV) share price is once again in a downtrend after failing to break above a key resistance level on its chart. Consequently, the shares of the British low-cost carrier are eyeing more downside in the coming days. The stock is currently 9.2% down from its yearly high.
British stocks are experiencing strong selling pressure on Friday as the Bank of England hiked interest rates to 5%. The benchmark, FTSE 100 index, fell by 30 points after another rejection from the 7,600 points level. EasyJet shares also showed a very negative price action and were down 1.92%.
As per the latest easyJet plc news, JPMorgan has increased its price target for the easyJet share price. The investment giant has maintained a neutral rating on the stock while updating its price target from 530p to 550p. This will be around 13% increase from the current stock price of 485p.
On Thursday, the Bank of England raised the interest rates by a surprising 50 bps. The move comes as the inflation in the UK surges to the highest among the Western European countries. This has taken the interest rates in the country to 5%, drying up liquidity from the equity markets.
The technical analysis of LON: EZJ reveals that the stock has been trading within 457p-521p since January 2023. Despite multiple attempts, the stock has failed to break out of this range. Considering the ongoing pullback, I expect the shares to retest the range lows in the coming weeks.
For me, the easyJet share price forecast will remain bearish as long as the stock remains below 521p. Only a break above this level can flip the stock bullish on a higher timeframe. The indicators like RSI and MFI are pointing towards more downside in the coming days.
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This post was last modified on %s = human-readable time difference 11:05