easyJet and Ryanair rally on more positive outlook
Budget airlines easyJet and Ryanair have both seen gains in the wake of updates, leading to hopes that their share prices are poised to move higher.
Ryanair Holdings PLC (LSE) and easyJet PLC have both revealed the scale of the hit taken over the past three months, with traffic down by huge amounts and passenger numbers a small fraction seen at the same time last year. Both however have rallied following today’s news, as the airlines suggest that passenger numbers are improving and that they expect to increase the number of flights more quickly than expected.
Ryanair share price: technical analysis
Ryanair Holdings PLC (LSE) shares managed to break higher in late May, hitting a peak of €13 by early June. Since then however they have been unable to make much headway, with gains faltering as they approach the €11.50 level. But the bears have also been disappointed, with losses contained above €10. Dips into this level have been met with buyers, providing a base for a possible break higher.
A break through €12 would be a bullish signal, and put the price on course to challenge €13 and the June peak. With momentum indicators such as stochastics and MACD also either holding steady or rising, we may be about to see a recovery for the shares. A break below €10 negates this bullish view.
easyJet share price: technical analysis
For easyJet PLC it has been a much tougher ride – like Ryanair it rallied into early June, recovering the 900p level for the first time since early March. But that marked the high point for now, and the rally was followed up by a fall that took the price back below the 50-day SMA and then down to 500p. This was the area where the price bottomed out in early March, providing one positive element for the bulls to cling on to.
In the wake of results we have seen the shares gain 10%, and if this bounce is followed up with further gains and a positive MACD crossover then a push higher seems likely. An attempted bounce in mid-July stalled at the declining 100-day SMA (currently 638p), so any rally needs to clear this in the first instance. Upside targets le at 740p and then 900p. A loss of 500p would invalidate this outlook and call for a more bearish view.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and 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 advantage while conditions prevail.
Related articles
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
