Will easyJet continue falling, or will it recover to March highs of 1259p?

• easyJet shares fell 20.8% from March highs
• They have since bounced 5.6% to trade 1054p (at time of writing)
• Shares -22.9% from 2019 highs; +5.6% from 2019 lows; -4.3% year-to-date.
• Can the stock recover March 1259p highs?
• 2 Apr: Macquarie says Ryanair faces worse summer than easyJet
• 2 Apr: AJ Bell says Wizz Air’s Brexit flyby lifts results
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading easyJet – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards March’s 1259p highs. You decide to buy exposure to £10,000 worth of easyJet  using a CFD, at the current price of 1054p. To do this, you need £2,000.

Let’s assume easyJet recovers back to 1259p highs (+19.4%). Your profit would be £1940, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. easyJet falls 5% and hits your stop-loss. Your loss would be £500.

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