easyJet plc : Benefit from the support area
Entry price | Target | Stop-loss | Potential |
---|
GBX 1,429 |
GBX 0 |
GBX 1,375 |
-100% |
---|
EasyJet might rebound on the significant threshold currently tested.
From a fundamental viewpoint, the security has a low valuation with an EV/Sales ratio of 1.13x. By 2018, it seems that easyJet's profitability could significantly increase. Indeed, net margin should be at 13.57% in 2018 vs 11.54% for the current year. Sales are also expected to increase. To date, P/E ratio for 2016 is estimated at 10.01 and at 10.01 for 2017.
Technically, the security is in a consolidation area limited by the significant 1415 support and the GBp 1555 resistance. Above the lower limit, investors could aim a rebound toward the resistance area and the intermediate level at GBp 1515.
Investors can open a long trade near the GBp 1415 area. In first instance, the target price will be the GBp 1515. In case of breakdown of the GBp 1416 support at the closing price, investors should close their positions.
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