From the beginning of this month, the easyJet stock (LON: EZJ) continues to rise, while trading above its medium-term upside support line taken from the low of June 3rd. That said, today, the share price charged its key resistance barrier, at 1120.50, which is the high of July 22nd. It overshot that barrier by a bit, but EZJ failed to stay above that mark. For now, the stock keeps on balancing above the 200-day EMA, which may be seen as a positive, but in order to get comfortable with higher levels, we need to see a daily close above the 1120.50 hurdle first, hence why we will remain cautiously bullish with the short-term outlook.
A strong move higher and a daily close above previously-discussed 1120.50 barrier, could increase the stock’s chances of pushing further up, as this would confirm a forthcoming higher high and more buyers could join in. The next possible obstacle on the way north might be the 1183.00 zone, which is the high of May 1st. Initially, the price could stall around there, or even correct back down a bit. But as long as it stays above the 1120.50 hurdle, we will continue targeting higher areas. If EZJ rises again and overcomes the 1183.00 zone, the next possible resistance level to watch out for could be at 1230, marked by the high of April 17th.
Our oscillators, the RSI and the MACD, seem to be in support of the above-discussed scenario for now. The RSI is above 50 and points higher. The MACD is in the positive territory and also points higher, while sitting above its trigger line.
Alternatively, if the price suddenly reverses and falls below the 992.00 zone, which is the low of September 12th, this could open the door for further declines. EZJ could then slide to the 974.50 obstacle, a break of which could lead to a test of the 950.00 area, marked by the inside swing high of September 6th. The stock might get a hold-up around there, but if there are still not enough new buyers at that price, EZJ could continue drifting south. This is when we will aim for the 911.00 level, marked by the low of September 9th, or for the aforementioned upside line, which could provide additional support.
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