Will easyJet turn, or will it continue to rise to October high of 1281p?

• The chart shows the easyJet price action since mid-October.
• Shares in a weeklong uptrend from 1063p lows; now at 1199p.
• Shares -35.4% from 2018 highs; +10% from 2018 lows; -18.4% year-to-date.
• Recent fall in oil prices is benefiting airline shares like easyJet.
• According to analysts at Deutsche Bank (24 Oct), easyJet shares “look oversold”.
• In the past week, the shares have risen by 12%. Will this momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading easyJet – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of easyJet using a CFD, at the current price of 1199p. To do this, you need £2,000.

Let’s assume easyJet trend continues to October high of 1281p (+6.8%). Your profit would be £680, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. easyJet falls 4% and hits your stop-loss. Your loss would be £400.

This is provided for information purposes only. It should not be taken as a recommendation.