easyJet shares look ready to take off
These share have had a decent couple of months, recouping losses suffered during the spring. Now, independent analyst Alistair Strang sees reason for further optimism.
26th September 2024 06:34
by Alistair Strang from Trends and Targets
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The Travel and Leisure sector of the UK market is now looking interesting, appearing on the cusp of providing some reasonable gains.
Presently bouncing around the 7,943 point level, the sector only needs close a session above 7,972 to suggest happier times may be ahead as a cycle toward 8,822 points should begin. Our longer-term secondary calculates at 9,167 points, a price level at which some hesitation is anticipated but with closure above such a level, the sector should intend challenging the high above 10,000 points, prior to Covid-19 trashing the sector from 2020 onwards.
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For easyJet (LSE:EZJ) , their share price has been moving slightly ahead of the travel sector index, and the pause in share price movements over the last seven sessions tends to provide quite a lot of hope for forthcoming positive movement.
Currently, above 528p should trigger movements to an initial 540p with our secondary, if bettered, at 687p. The visuals on the chart below indicate quite a strong potential for future hesitation at the 687p level, given historical share price movements since 2022. In our experience, only once the share price closes above such a level dare we accept future strong movement should occur.
Our converse scenario triggers with share price movement below 473p, allowing for reversals to an initial 446p with our secondary, if broken, at 411p and a potential bottom. However, overall we’re inclined toward optimism here.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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