The EasyJet share price bounced back after the European Union outlined reopening plans. The stock rose by more than 4% to 1,082p, which is the highest it has been since March 2020. It is 160% above its lowest level last year. Shares of other airline companies like IAG, Ryanair, Lufthansa, and Air France KLM also jumped by more than 1%.
What happened: The Easyjet share price has rallied in the past few months as investors price in the reopening of the world economy. This is as many countries have vaccinated millions of their populations. In the United Kingdom, the government has vaccinated more than 34 million people while in the United States, hundreds of millions of people have received a shot.
Other countries like Germany, Canada, and France have vaccinated millions. Therefore, countries are starting to prepare for a return to a new normal. During the weekend, the European Union announced that it would reopen to foreigners who are fully vaccinated. In a statement, a EU official said:
“Hopefully with the situation improving and the vaccination rate immensely picking up, we will also see a gradual phasing out of these additional conditions.”
Such moves are good news for EasyJet, which is a major airline that operates in Europe. The company’s most profitable airports are in Amsterdam, Geneva, Milan, and Belfast.
The four-hour chart shows that the EZJ share price did something important today. After days of consolidation, the shares managed to move above 1,063p, where it had struggled to move above several times before.
The shares are above the short and long-term moving averages and the ascending trendline that is shown in red. The Relative Strength Index (RSI), has been on an upward trend, which is also a bullish factor. Therefore, like I predicted a few days ago, I predict that the shares will continue climbing. However, a decline below 996p will invalidate this trend.
Please don’t consider this investment advice. Views expressed here are those of the writer and the writer and InvestingCube will not be held liable for any losses.
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