EasyJet is up by a percentage point in today’s trading session. The price gain is a reversal of what has been happening in the markets for the past week, where the trend has been aggressively bearish.
Despite today’s small price gains in the markets, EasyJet’s share price is still down by 7 per cent in August and 39 per cent year-to-date. Today’s share price may also reverse, and the session close lower than the opening price since we are still in the early hours of the trading session.
However, the drop in price is not surprising. For the past few months, the company has been struggling to meet all customers’ needs, with thousands of flights cancelled in the past few months. The flight cancellation problem became so big that the company’s chief operating officer, Peter Bellew, was forced to resign. The company’s reputation has also taken a hit due to flight cancellations and customers becoming frustrated by poor services, including stories of lost luggage, long security queues, and delayed flights.
All these factors have cast doubt on whether Easyjet will be able to bounce back in the markets. While its competitors have started seeing gains in the markets, with Ryanair recording a profit of £170 million, the question of whether investors should expect such margins and return to its pre-pandemic levels still continues to boggle them.
Looking at the daily chart below, today’s rise in the markets is an exception from what has been happening for the past week. However, since we are still in the early hours of the trading session, there is a high likelihood that prices may still come down and continue the aggressive bearish trend.
Therefore, my EasyJet share price prediction expects the prices to resume with downward movement. There is a high likelihood that we may see EasyJet’s share price hitting the 338 demand level and trading below it. However, my analysis will be invalidated should the current bull move hit the 383 supply level.
This post was last modified on %s = human-readable time difference 10:59