The level that Wizz Air shares might bounce
This airline has had a tough couple of months and shares now trade near a record low. Independent analyst Alistair Strang has re-run his software and identified a crucial level for investors to watch.
11th September 2024 07:34
by Alistair Strang from Trends and Targets
The financial press has been salivating this week over the prospects for Wizz Air Holdings (LSE:WIZZ) and its incoming fleet of Airbus A321XLR jets and the companies plans for longer range routes from Gatwick to Jeddah to start with.
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While we’re obviously bothered by the market choosing to gap the share price below the uptrend at the start of August, it appeared to send a pretty solid signal that the market wants the share price down.
Unusually for us, we’re not entirely convinced by the movement as below 1,150p allows for further reversal to an initial 1,078p. Effectively, this suggests we expect a bounce, or ideally the market opting to gap up the share price, anytime now. The real danger comes with closure below 1,078p as a further cycle to 560p becomes possible, along with substantial difficulty in bouncing.
From a near-term perspective, above 1,218p should trigger slight recovery to an initial 1,377p and some hesitation. Our secondary, if such a level is beaten, is at 1,834p, taking the share price into a region where happy days should be ahead, due to the value being once again above the uptrend since 2022.
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.Â
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