Happy times ahead for easyJet shares?
Shares in the short-haul airline haven't been above 600p in over two years and, while independent analyst Alistair Strang sees reason for optimism, there is a worry.
28th November 2024 07:14
by Alistair Strang from Trends and Targets
We have to admit, it's officially Christmas, and easyJet (LSE:EZJ) managed to produce a set of positive results which give considerable hope for next year.
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Visually, the current implication suggests further happy times may be ahead for easyJet. Our only worry is, despite our prior target of 540p, the share price certainly exceeded it on a daily basis but assiduously avoided closing above this target level, except for 11 November. We suspect this may be a calibration error at our end as the overshoot to 542p wasn't any sort of visual big deal. This was proven out on the 27th when it was spiked to 564p at the open before reversing to 531p as the day dragged on.
The situation now hints at movements below 531p triggering reversal to an initial 503p with our longer-term secondary, if broken, at an eventual bottom of 460p. Certainly, once we introduced 540p as a target level, this share price has tended to regard it as an inviolate level.
However, if we chose to work on the festive side of life and apply a positive twist to the future, easyJet's share price now exceeding 564p should trigger gains to an initial 585p with our secondary, if beaten, at 685p. This is quite a big deal from a big picture perspective as the share only needs closure above 708p to move into a zone where some seriously strong gains are possible.
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.
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