EasyJet (LON: EZJ) share price opened higher on Monday, but the shares turned red once again as the selling pressure persisted. The shares have been trading inside the same range for the past 6 months. There seems to be more downside for the shares of the British low-cost carrier after a recent rejection from range highs.
The UK shares have been experiencing a huge sell-off since last week. The Bank of England hiked the interest rates to 5%, which is the highest for the country since 2008. This decreased the risk appetite of the investors, and hence the equities are ranking.
The benchmark FTSE 100 index turned red on Monday for the 7th straight day in a row. This depicts the intensity of the selling pressure in the UK stock market. The easyJet share price also slid 0.25% in the initial hours of trading. Till press time, the shares were changing hands at 468.5p.
The major reason behind the tanking share prices of easyJet is the bearishness in the markets. The increased interest rates in the country are drying up liquidity in the market. While the airline industry has shown a significant recovery in 2023, it still remains prone to an economic slowdown, as anticipated by many analysts.
You must be tired of watching the following chart again and again. To be honest, so am I. Actually LON: EZJ has been sideways since the start of the year, and not a lot has changed since I last covered easyJet stock. The price is still trading within the 457p-521p trading range.
In the coming days, the easyJet share price forecast is looking bearish as I expect a retest of the range lows that lie around 457p. This will be a key retest, and a breakdown may send the shares into a prolonged bearish consolidation.
In the meantime, I’ll keep sharing updated easyJet share price analysis and my personal trades on my Twitter where you are welcome to follow me.
This post was last modified on %s = human-readable time difference 11:30