The EasyJet share price strong recovery has faded even as other airline stocks like IAG have rallied. The EZJ stock price is at 992p, which is slightly below the year-to-date high of 1,063p. It is still up by more than 30% this year and analysts at Credit Suisse predict the stock will soon rise to 1,200p, which is 20% above the current level.
What happened: EasyJet shares are struggling even as the UK economy is set to reopen as the government accelerates its vaccination program. This struggle is partly because of the state in the rest of Europe, where governments have been slow in rolling out the vaccine. In key destinations like Germany and France, the governments have vaccinated only less than 15% of the population.
Therefore, there is a possibility that the company will not restart most of its profitable routes soon. The EasyJet share price is also struggling because of the suggested requirements to check the vaccination state of travelers.
In a note this week, analysts at Credit Suisse said that they expect the shares will rise to 1,200p. Other bullish analysts are from companies like Sanford Bernstein, Deutsche Bank, and UBS.
On the daily chart, we see that the EasyJet share price has been in a relatively weak upward trend. It has found a substantial resistance slightly above the 50% Fibonacci retracement levels. Also, it is being supported by the 25-day and 50-day moving averages. It is also forming what looks like an ascending triangle pattern.
Therefore, in my view, the stock may keep rising as bulls target the next key resistance at 1,200p as suggested by Credit Suisse analysts. The invalidation point for this trade will be a drop below 890p.
