Easyjet’s sudden drop to £940 early this June did incite some panic, but that was just because of the closure of the Portugal-UK corridor which spread wildfire amongst airline stock bears. We came back down to the £960s, and now are consolidating at £986, up from £967 a big almost 2% on the day. There is no doubt, though, that fuel prices are damaging this industry. Yes, the drop was rapid, and we are looking at a nice slow, comeback, which is always promising, but today was rather jumpy. It would be better to short slightly at today’s closing price. Easyjet’s recent weekly resistance line is at the £1005 zone, but if we get to it, its always a bad sign, as the stock usually takes a downturn. Our monthly line is at £994, but keep in mind that getting above it is difficult. On the more positive sign, we have moved away from the SMA 100 (100 day moving average trend line), always a good sign for Easyjet’s upward movement. We personally don’t have a lot of confidence left in the Pound rally, but in what concerns Easyjet now, we expect tomorrow to be uncertain and this next week to be a good surprise for the bulls. So short a small amount, but keep a lot of length, is our recommendation. 9th of June 2021.
Aeronews24 