Sometimes, it’s worth decluttering your charts in case you’re missing something obvious. Aside from ditching ALL technical indicators, just change the chart type to “Line”, zoom out and take a 5+ year view, and think about what you’re seeing. Currently EasyJet provide a perfect example for this stance, albeit not a particularly comfortable example.
The chart below for EZJ dates back to 2009 and, hopefully obviously, there are a couple of items worthy of consideration. The current narrative among shares is “buy while they’re cheap” but, with Easyjet, we’re pretty far from convinced the budget airline is offering a share price which matches their alleged ticket policy.
The first thing which should be noticed is the current share price. By turning off “candles”, it becomes immediately clear the share is achieving “lower lows”, perhaps one of the biggest warning bells a share can ring. The chart below, showing Easyjet with “candles” turned on manages to utterly conceal the harsh reality of recent movements.
Secondly, there’s the small matter of a potential Head and Shoulders making itself known. Generally, we ridicule chart patterns but this one is deserving of respect, roughly 2/3rds of the time. Since the Covid-19 pandemic low of 2020, it’s possible Easyjet has painted this dangerous pattern. To be honest, Easyjet are far from alone in describing such a trajectory since the pandemic hit. It’s currently the case Bitcoin appear to be reaping the rewards of a similar trade history.
The chart below shows Easyjet, this time with candles turned on. Just to add confusion, we’ve chosen to Red circle the major share price manipulation gaps since 2020. At a glance, it’s obvious the market has chosen to force the share price down with a greater frequency than the UK Government has offered flights to Rwanda. On 10 out of 13 circles, the market has gapped the price downward, almost feeling like there may be a wish to drive Easyjet lower.
This being the case, the current situation suggests weakness below 408p risks triggering reversal to 334p next and hopefully a bounce. Below 334p and we’ll start to suspect the effect of the previously mentioned Head & Shoulders formation is kicking into play, our secondary target calculating at a ridiculous looking 38p.
For Easyjet to ascend out of trouble, the share price needs exceed Blue on the chart, currently around 600p as this should trigger gains to an initial 709p with secondary, if bettered, at a game changing 773p.
|Time Issued||Market||Price At Issue||Short Entry||Fast Exit||Slow Exit||Stop||Long Entry||Fast Exit||Slow Exit||Stop||Prior|
15/06/2022 FTSE Closed at 7273 points. Change of 1.2%. Total value traded through LSE was: £ 6,820,318,073 a change of -14.4%
14/06/2022 FTSE Closed at 7187 points. Change of -0.25%. Total value traded through LSE was: £ 7,967,426,420 a change of 8.5%
13/06/2022 FTSE Closed at 7205 points. Change of -1.53%. Total value traded through LSE was: £ 7,343,380,444 a change of 22%
10/06/2022 FTSE Closed at 7317 points. Change of -2.13%. Total value traded through LSE was: £ 6,019,204,674 a change of -10.01%
9/06/2022 FTSE Closed at 7476 points. Change of -1.54%. Total value traded through LSE was: £ 6,688,998,845 a change of -1.03%
8/06/2022 FTSE Closed at 7593 points. Change of -0.07%. Total value traded through LSE was: £ 6,758,685,339 a change of -1.74%
7/06/2022 FTSE Closed at 7598 points. Change of -100%. Total value traded through LSE was: £ 6,878,313,102 a change of 0%
SUCCESS above means both FAST & SLOW targets were met. ‘CESS means just the FAST target met and probably the next time it is exceeded, movement to the SLOW target shall commence.
Our commentary is in two sections. Immediately below are today’s updated comments. If our commentary remains valid, the share can be found in the bottom section which has a RED heading. Hopefully, this will mean you no longer need to flip back through previous reports. HYPERLINKS DISABLED IN THIS VERSION
Please remember, all prices are mid-price (halfway between the Buy and Sell). When we refer to a price CLOSING above a specific level, we are viewing the point where we can regard a trend as changing. Otherwise, we are simply speculating on near term trading targets. Our website is www.trendsandtargets.com.
UPDATE. We often give an initial and a secondary price. If the initial is exceeded, we still expect it to fall back but the next time the initial is bettered, the price should continue to the secondary. The converse it true with price drops.
We can be contacted at email@example.com. Spam filters set to maximum so only legit emails get through…
Section One – Outlook Updated Today. Click here for Section Two – Outlook Remains Valid shares
Click Epic to jump to share: LSE:AML Aston Martin** **LSE:CCL Carnival** **LSE:IPF International Personal Finance** **LSE:NG. National Glib** **LSE:RR. Rolls Royce** **LSE:SPX Spirax** **
Updated charts published on : Aston Martin, Carnival, International Personal Finance, National Glib, Rolls Royce, Spirax,
LSE:AML Aston Martin Close Mid-Price: 510.2 Percentage Change: -0.74% Day High: 534.2 Day Low: 501
Weakness on Aston Martin below 501 will invariably lead to 472 with secon ……..
LSE:CCL Carnival. Close Mid-Price: 728.2 Percentage Change: + 0.52% Day High: 738.8 Day Low: 713.6
In the event Carnival experiences weakness below 713.6 it calculates with ……..
LSE:IPF International Personal Finance Close Mid-Price: 76.5 Percentage Change: -4.26% Day High: 82 Day Low: 77.6
If International Personal Finance experiences continued weakness below 77 ……..
LSE:NG. National Glib. Close Mid-Price: 1058 Percentage Change: + 0.71% Day High: 1070.5 Day Low: 1038.5
Weakness on National Glib below 1038.5 will invariably lead to 953 with s ……..
LSE:RR. Rolls Royce. Close Mid-Price: 90.69 Percentage Change: + 3.15% Day High: 91.68 Day Low: 87.71
In the event of Rolls Royce enjoying further trades beyond 91.7, the shar ……..
LSE:SPX Spirax. Close Mid-Price: 9496 Percentage Change: + 2.28% Day High: 9512 Day Low: 9086
Target met. Continued weakness against SPX taking the price below 9086 ca ……..
*** End of “Updated Today” comments on shares.
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