The EasyJet share price continued its downward track on Wednesday, lowing 3.58% as of writing as the market continues to respond to its dire full-year earnings projections.
EasyJet is projecting a headline loss not exceeding £1.175 billion for the year ended September 2021, which is in line with expectations. The losses are an expected consequence of the global shutdown of aviation following the COVID-19 pandemic’s onset in March 2020. The final earnings figure will be reported on 30 November.
However, the company has put forward optimistic projections as global travel recovers. EasyJet says its European routes are showing recovery, and its flights in the region are increasing. It also aims to achieve 70% of its pre-pandemic capacity on recovery of holiday demand. EasyJet expects more business activity in 2022.
The double top on the daily chart has fully resolved, with the measured move towards the 607.8 price completion point fully achieved. However, an intraday violation of that support mark suggests that bearish pressure is still on. A breakdown of this level clears the way for a bearish drive towards 566.4 (21 December 2020 and 16 September lows).
On the flip side, the bulls need to successfully defend the 607.8 support for the price to have a chance at recovery. If the price closes above this level and there is sufficient upside momentum, 655.8 can become available once more. Above this level, 692.8 and 739.4 are additional targets to the north.
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This post was last modified on %s = human-readable time difference 15:42