MANCHESTER UK, 30 MAY 2019: Easyjet Airbus A320 flight U21912 from Palma de Mallorca lands on runway 23R at Manchaester Airport.
EasyJet share prices have struggled in 2022, dropping by 28 percent from their 2022 highs to trade at the current prices of below GBp 520. The drop, however, may be a result of external factors that the company cannot control.
EasyJet’s share price started going downwards at the onset of the Russian invasion of Ukraine. This followed a similar trend to other airlines such as British Airways, which lost 5 percent in February, and Lufthansa share prices dropped by 14 percent. Although the uncertainty remains and there has been a slow recovery, the drop in prices had little to do with EasyJet’s management and more to do with external factors. The war’s long-term impact is also likely to see the share prices continue to drop in the coming months.
Today’s trading session has seen EasyJet’s share price drop by more than 3.5 percent, wiping gains made in the last three trading sessions. The drop has also seen EazyJet share prices trading below GBp 520. The prices have also dropped by 28 percent from their yearly high of 729, a price recorded on February 16, 2022.
Looking at the daily chart below, we can see that EasyJet’s share price has been in a long-term bearish move that started. Using a Fibonacci retracement tool, we can also see that the prices had recently retraced to the 50 percent Fibonacci level. The prices have also started to fall after reaching the support level.
Therefore, based on Fibonacci level analysis, there is a high likelihood that the EasyJet share price will continue falling until it hit the GBp 417 level. However, if the prices fail to move to the 23 percent level, but instead reverses, then my trade analysis will be invalidated. It will also likely mean that the share prices are reversing, and a bullish move is in the offing.
This post was last modified on %s = human-readable time difference 14:04