EasyJet share price is in a deep slumber: will it wake up soon?

July 20, 2023 08:45 PM AEST | By Invezz

EasyJet share price is in a deep slumber: will it wake up soon? — Image source: Invezz

EasyJet’s business is booming

EasyJet, the giant budget airline, published strong financial results and predicted a strong summer season ahead. In a statement, the firm said that its profit in the second quarter jumped to over 203 million pounds. It had made a loss of over 114 million pounds in the same period in 2022.

EasyJet’s business is booming, helped by the revenge traveling and easing inflation. Data published on Wednesday showed that inflation in the UK dropped to 7.9% in June. Lower inflation boosts travel by fleeing savings.

The biggest risk for EasyJet and other airlines is air traffic control disruptions in some of the busiest airports in Europe. Air traffic control staff at key airports in Italy, Belgium, Portugal, and France have warned that they will strike soon.

These employees are complaining about wages, poor working conditions, and other staffing issues. If these strikes happen, European airlines will likely lead to delays, flight cancellations, and losses.

EasyJet and other European airlines are seeing policy issues. France has already banned short-haul flights. And earlier this month, the Dutch government won a lawsuit to fight flights to Schipol, the 13th busiest airport in the world.

Still, as I wrote here, EasyJet is a solid business with a growing market share, low debt, and a strong brand name. These features make it one of the best European airline stocks to invest in.

EasyJet share price forecast

EZJ chart by TradingView

EasyJet stock price has stalled in the past few months. It has remained inside a narrow range whose support and resistance levels are 466p and 521p. The shares are consolidating at the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has drifted downwards. ATR is one of the most popular volatility indicators.

Therefore, I suspect that EZJ stock will remain in a tight range in the coming weeks. Traders and investors should pay a close attention to its relative volume and the support and resistance levels mentioned above.

A break below 466p in a high-volume environment will lead to a deeper sell-off. On the other hand, a move above the resistance at 521p will lead to more gains.

The post EasyJet share price is in a deep slumber: will it wake up soon? appeared first on Invezz.

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