Company Overview: Easyjet PLC (LSE: EZJ) is a FTSE 100 listed United Kingdom-based holding company primarily providing flights and package holidays, primarily within Europe. The company operates through two main segments: the Airline business and the Holidays business. The Airline business segment is responsible for operating its route network, while the Holidays business segment focuses on selling holiday packages. EasyJet's fleet comprises various aircraft models, including the A319, A320, A320neo, and A321neo. EasyJet serves as a vital connector for businesses, families, and holidaymakers across the United Kingdom, France, Germany, Italy, and other European destinations. The company sells seats through multiple channels, including its own website (www.easyjet.com), the easyJet Worldwide platform, its mobile application, and global distribution systems. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Resistance Levels, and Recommendations on this stock.  

EZJ’s Technical Observation

EZJ’s prices have undergone a correction in recent times and are now trading near a lower trendline support level. The company has posted improved financial results and anticipates high demand during the summer holidays. A reversal in the Current Market Price (CMP) of GBX 535.40 is anticipated, supported by a strong volume buildup, and stochastic data indicating an oversold market. The leading indicator RSI (14-period) is at 46.62, suggesting a reversal in the price trend. However, the stock price is currently trading below the trending indicators, the 21-period SMA and the 50-period SMA, which could potentially act as resistance in the near term. The important support levels for the stock are situated at GBX 474.00 and GBX 452.00, while key resistance is positioned at GBX 591.00 and GBX 629.00 levels.

EZJ’s Daily Chart

As per the above-mentioned price action and technical indicators analysis, a ‘Speculative Buy’ rating has been given on Easyjet PLC (LSE: EZJ) at the Current Price of GBX 535.40, as of 7:20 AM, April 18, 2024. Easyjet PLC (LSE: EZJ) was last covered in a report dated 28^th December 2023'. Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain Macro & Micro-economic data and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Related Risks: This report may be looked at from a high-risk perspective and recommendations are provided for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rate risks, currency risks, social and political instability risks etc.

Note 2: How to Read the Charts?

The Green colour line reflects the 21-period moving average while the red line indicates the 50- period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.

The reference date for all price data, currency, technical indicators, support, and resistance levels is April 18, 2024. The reference data in this report has been partly sourced from REFINITIV.

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

GBP: British pound sterling

GBX: British pence sterling

RSI: Relative Strength Index

USD: United States dollar

Note: Trading decisions require a thorough analysis by individuals. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.