The EasyJet share price has been on a downward trend for the past two months amid the Delta variant concerns. The company’s shares have slipped more than 28% from their highest level this year in May. UK’s leading airline has a total market capitalization of £3.64 billion.
Delta Concerns
The resurgence of Covid-19 infections alongside the highly contagious Delta variant has weighed heavily on the aviation sector. The surge in the cases has led to countries reimposing strict lockdown restrictions across the globe in a bid to curb the virus spread. Despite the successful vaccination rollouts, the virus remains a major concern to the transport sector.
The onset of the pandemic in 2020 saw the British multinational airline group lose more than £1.3 billion. However, the company’s revenue bounced back in the first two quarters of 2021, following the easing of lockdown restrictions.
The rise in fuel costs is also a major slowdown in the EasyJet share price. Commodities have also been affected by the ongoing crisis. Therefore, commodity prices have been increased in a bid to trim down losses.
However, all hope is not lost. The easing of the virus restrictions in some sectors has boosted economic confidence. Most airlines such as EasyJet and Ryanair plan to ramp up their flying schedules.
EZJ Technical Analysis
The EasyJet share price has been trading below the descending trendline. The company’s shares hit an intraday high0f 802p, which is slightly above the 800p level before pulling back. At the time of writing, it was trading 1.12% higher at 798p.
On the daily chart, EZJ is trading below the 50 and 200-day moving averages. The 50-day has crossed below the 200-day forming a death cross, which hints at a bear turn. Its Relative Strength Index (RSI) is at 38.17, which is closer to the oversold region.
If EZJ is trading below the 200 DMA, it will continue trading lower. If this happens, the bear’s next target will be July’s low at 753p. On the flip side, a move above the crossover at 884p will invalidate this view. As such, the bulls will be targeting the resistance at 960p.
EasyJet Share Price Chart
