Ryanair: turbulent times for the airline
While the fundamental outlook for budget airline Ryanair might be improving, the chart still looks quite bearish, even with the recent bounce from the lows.
It has been a tough few months for airlines, and Ryanair is no exception. The profit warning in mid-January sparked off another drop in the share price, with the warning of lower fares for the winter hurting sentiment. In addition, the firm is warning of overcapacity on short-haul routes, a sign that prices are unlikely to rise soon.
Falling oil prices will provide a near-term boost, and an improved economic situation in Europe might also alleviate some of the overcapacity. At around 11 times forward earnings, the shares are at their cheapest level in almost three years, though the technical picture remains discouraging.
Since August 2017, the shares have lost ground relentlessly. However, they find themselves in a possible falling wedge formation, which has been in place since October. Resistance has been encountered around £11.00, and a fresh decline would target the recent lows around £9.27. Any sustained rebound needs to first breach the 50-day simple moving average (SMA) of £11.02 and then move on to clear the major zone of resistance around £12.75, which was support in August and September before becoming significant resistance in November.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Act on share opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
