EasyJet (LON: EZJ) share price has been in a downward spiral after a sharp sell-off in the past two weeks. This sell-off appears to have been triggered by the latest earnings report. The technical analysis reveals that the stock has more downside.
The British stock market showed a positive sentiment on Thursday. The benchmark FTSE 100 index turned green after sliding yesterday and gained 29 points. This also resulted in a bounce in EasyJet shares which were up 0.64% in their first hour of trading.
According to the most recent EasyJet news, the private wealth management firm Bernstein has lowered its EasyJet share price target. The firm has revised the target to 500p from its previous figure of 550p. However, the market-perform rating remained unchanged.
The release of the latest earnings report was the biggest headwind for EasyJet. The six months report showed that the pre-tax losses were 25% lower than the same period last year. The company CEO is expecting the company to operate at its pre-pandemic levels by this summer.
The analysis of the LON: EZJ chart shows that the price is once again trading in the 457p-522p trading range. This range has been pointed out again and again in our previous articles. Currently, the bears are targeting the range lows that lie around 457p. A retest of 457p may result in a strong bounce.
The only way to avoid this bearish EasyJet share price forecast is for the shares to break above 522p. This won’t be easy considering the high-interest rates environment in the UK. Furthermore, if the UK economy enters a recession, air travel may get significantly decreased. This may further increase the headwinds for the airline operators like EasyJet.
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This post was last modified on %s = human-readable time difference 09:23