EasyJet Plc - Daily

Easyjet continues to feel the stuggle of the cost of living crisis in the UK. demand is stalling, however the stock does remain supported.

Taking a look at EasyJet in this instance, from a technical perspective the share is neutral. The current share price sits at £3.62 which is located in the centre of the descending triangle, hence, supporting the neutral stance. The downtrend support is visible at £3.39 (red support line), if a break through this support was to occur a further fall could head towards the low £3.00’s level. However, from a positive viewpoint the initial resistance sits at £4.30. A burst above this (blue trendline) could take the share towards £5.45 developing a short-term bullish outlook. RSI reads 44 and MACD remains neutral suggesting a neutral position.

Comment “Airlines stocks will be under pressure given the high cost of fuel and lower pre-pandemic demand. If a recession hits and inflation continues into next year, then airlines could struggle with cashflow as demand may slump again due to the cost-of-living crisis in the UK. Exchange rates will also be affecting airlines as international tickets will make it difficult to price overseas fees.”