The EasyJet share price is holding steady as investors price in a steady recovery of the aviation sector. The EZJ stock is trading at 635p, which is about 38% above the lowest level in December last year. Other aviation stocks like IAG and Wizz Air have also made a spectacular rebound.
EasyJet share price has made a strong recovery as investors expect that the aviation sector will recover swiftly in 2022. The view was confirmed on Wednesday when Wizz Air announced that it expects that its passenger numbers will keep rising this year. The company carried over 7.7 million customers in the fourth quarter.
The main catalyst for the EZJ share price will be the company’s trading statement that comes today. Analysts expect that the company will have a positive report considering that regional airlines saw a recovery in the fourth quarter. However, the biggest challenge for the company is that the omicron variant helped to slow the industry.
Like other airlines, EasyJet is also expected to express concerns about costs. Recently, jet prices have jumped sharply while the cost of labor has also tilted higher in most countries.
The daily chart shows that the EasyJet stock price has been in a bullish trend lately. The FTSE 250 stock jumped to a year-to-date high of 647p. The stock has moved above the 25-day and 50-day moving averages and the descending trendline shown in green.
Notably, the stock seems like it has formed an island reversal pattern that is shown in red. Therefore, there is a likelihood that the stock will retreat in the coming days. If this happens, the next key support level will be at 565p. This view will be invalidated if the stock moves above 647p.
This post was last modified on Jan 27, 2022, 04:44 GMT 04:44