EasyJet Share Price Can Drop A lot More, Here’s Why

Summary:
• EasyJet share price is tumbling due to a massive correction in the UK stock market. If FTSE 100 keeps dropping LON: EZJ may tag 428p soon.

EasyJet (LON: EZJ) share price is tanking after a solid start in 2023. On Friday, the shares of EasyJet airlines fell for the 3rd consecutive day as they failed to hold the 500p level despite multiple breakout attempts. Till press time, shares were trading at 465p after losing 4.47% since yesterday.

EasyJet flights are one of the most viable options for those travelling on a strict budget. Recently, the British flight operator has launched its 68th summer route from Manchester airport to Istanbul. The first flight on the route will take off on 9th June with fares as low as £51.99.

LON: EZJ Tumbles As FTSE 100 Index Makes YTD Lows

The UK shares are having a very rough and volatile week as investors evaluate their risk appetite amid banking concerns. After the failure of multiple banks in the US has sounded alarm bells across the Atlantic. The negative reports about the financial health of the swiss lender Credit Suisse further deepen these concerns. Bank shares were the hardest hit sector this week.

A major reason for the tumbling EasyJet share price is the massive correction in FTSE 100. The benchmark of the UK stock market dropped to its fresh yearly lows this week after struggling to hold the 8000 points level. The reason behind this bloodbath is the fresh lows for the shares of most banks which experienced a massive sell-off this week.

EasyJet Share Price Targets 428p Level

LON: EZJ chart shows major levels of support and resistance as marked on the following chart. The major resistance is the 520p level, from where the price has seen multiple rejections. If the shares drop below 457p, then they can keep dropping till 428p. This level was a previous resistance which may now act as a support.

This might also result in a tag of a 200-day moving average which currently lies at 396p. Nonetheless, I expect a bounce before these levels as Easyjet airlines announced a 50% increase in its passengers in its recent financial report. The EasyJet share price forecast will flip bearish for me only if the price breaks below the 200 MA on the daily chart.