EasyJet’s share price is down by less than a percentage point in today’s trading session compared to Friday’s closing price. The drop, however, has been due to the huge gap-down of almost 2 per cent. However, since the markets opened, intraday data shows EasyJet’s share price has been aggressively bullish, and there is a high likelihood we might see the company closing with a price gain.
The bullish intraday trading comes amidst reports that Thursday’s full-year financial report will be positive for the company. Most investors expect the company to post revenue of between £5.5 to £5.6 billion. They also expect EasyJet to make a pretax loss of about £177 million, which is a huge improvement from 2021, when it made a pretax loss of £835 million and 2020, when the loss was £1.1 billion.
Following the rising fuel cost, many investors are also confident that the company will not be impacted greatly. Before the shortages and the rise in the price of fuel products began, the company had locked 83 per cent of its fuel requirements at a price 28 per cent below today’s market value. Therefore, its bottom line going forward is unlikely to be impacted negatively.
Despite showing bullish fundamental factors, the chart below shows EasyJet’s share price has been in an aggressive push to the downside. In September, for instance, the company lost over 17 per cent of its value, which was also an extension from the 10 per cent it lost in August.
October has also shown signs of extending the bearish trend after opening with a huge gap-down. Today, the prices are down by less than a percentage point. Although the intraday data shows a possible closure of the session above the opening price, my long-term EasyJet share price is to the downside.
Therefore, I expect the EasyJet share price to drop in the coming trading sessions. I expect it to trade below the 250p price level in the coming days. My bearish analysis will be invalidated should the price trade above 310p.
This post was last modified on Oct 10, 2022, 13:36 BST 13:36