Lately, the EasyJet share price has been under intense pressure as Delta variant uncertainties hover over the markets. The EZJ stock has slumped nearly 15% since the start of September and almost 20% since August. The stock remains 36.75% below its highest level this year in May when the lockdown restrictions were eased. Currently, EasyJet has a total market capitalization of £3.19 billion.
EasyJet Plc is a British multinational low-cost airline group. It is the largest airline in the United Kingdom. It operates both domestic and international scheduled services in more than 30 countries. The airline group has been in the spotlight in the past week after recording its worst three-day performance since January this year.
EasyJet Plc recently rejected a takeover approach from Wizz Air Holdings Plc. Wizz Air is a Hungarian ultra-low-cost carrier that operates in many cities across Europe. With the aviation sector facing the worst crisis in history, the Hungarian carrier seems to have taken advantage as it aggressively aims at expanding in Western Europe.
EZJ stated that they would raise $2 billion in stock and debt to fund the company as its struggles to rebound. The company also stated that it would pursue a rights offering of $1.65 billion and raise $400 million in debt. The UK airline is making preparations to compete for customers amid the tentative return of leisure travel.
The daily chart indicates several things about the EasyJet share price. First, the EZJ stock has recently taken a sharp dive in the past few days. It has been hovering around its lowest level this year. Second, the EZJ price has moved below the 25-day and 50-day exponential moving averages. It has also moved below the 50-day moving average.
Therefore, I EasyJet share price to accelerate downwards as the key support at 505p becomes the next logical target. Nonetheless, this view will be invalidated if the price moves past 700p, which is way above the current level.