EasyJet share price has staged a strong recovery in the past few days ahead of the company’s trading statement. At the time of writing, the EZJ stock was trading higher at 407.4p. The stock price has jumped more than 2% in the past week and nearly 20% in the past month. Its total market capitalization has climbed to £3 billion.
EZJ Performance
EasyJet share price will be in the spotlight this week as the company is scheduled to release its full-year results. the company has been on a strong recovery for the past few months as airline stocks rebound on the back of rising demand in the travel sector. As such, the cost of business has improved boosting the outlook.
Investors will be closely watching EasyJet’s full-year results scheduled for release later Tuesday. Investors are already aware that the airline’s losses will be less than a fifth of the previous year, but it is not yet ready to start dividend payments.
EasyJet is expected to report a pre-tax loss of around £180 million for the latest fiscal year. As such, the British airline company will have significantly narrowed the £1 billion headline losses from a year ago. In its last trading statement, the company reported that it had flown over 22 million customers in the third quarter. This saw its load factor jump to 92%.
The budget airline is also expected to have some other vital details up its sleeve on Tuesday amid rumors that it is in the sights of IAG. According to reports over the weekend, the parent company of British Airways, IAG, is eyeing up a possible deal for its rival EasyJet. This has also seen EasyJet shares climb over the weekend.
EasyJet Share Price Forecast
The daily chart shows that the EasyJet share price has been staging a strong recovery in the past few weeks. The stock is moving above the 25-day and 50-day moving averages. Its Relative Strength Index (RSI) is at 65, which is close to the overbought region.
Therefore, the stock is likely to continue its path to recovery in the coming days. If this happens, the next target resistance level will be at 450p. However, a drop below the important support at 375p will invalidate my bullish analysis.
