A UK share to buy while the price is low?

TL;DR

EasyJet shares show potential for a major reversal, with the possibility of a rally in the near future.

Transcript

hello it's john burford with chart of the week for monday the 4th of july i've found a very interesting setup here in easyjet it's one of the most heavily traded shares at the moment certainly on spread betting platforms this is the long-term monthly chart that i showed in the text version of chart of the week goes back you know before 2005 you've ... Read More

Key Insights

• ✋ EasyJet shares have shown a choppy market pattern since the 2015 high.
• 👋 The decline in the C wave off the B wave high on the monthly chart resembles a classic ending diagonal pattern.
• 😘 The monthly chart also exhibits a momentum divergence, indicating a potential major low.
• 💹 The entry of EasyJet shares into a chart support area suggests the possibility of finding major support.
• 📈 The daily chart shows a smaller-scale ending diagonal pattern, further supporting a potential reversal.
• 🫥 EasyJet shares may experience limited downside and a potential rally if it surpasses the trend line around £4.60-£4.80.

Questions & Answers

Q: What pattern is being observed in the monthly chart of EasyJet?

The monthly chart shows a potential ending diagonal pattern, indicating a possible major low.

Q: What is the significance of the momentum divergence on the monthly chart?

The momentum divergence suggests a potential reversal and rally in EasyJet shares.

Q: What pattern is observed in the daily chart of EasyJet?

The daily chart shows another ending diagonal pattern, indicating a potential reversal and limited downside.

Q: What is the target price if EasyJet shares rally?

The first target price is around the £8.50 region if EasyJet shares move above the wave two high on the daily chart.

Summary & Key Takeaways

• The long-term monthly chart of EasyJet shows a choppy market with a potential ending diagonal pattern, indicating a possible major low.

• The monthly chart also shows a momentum divergence, suggesting a potential reversal and rally.

• The daily chart of EasyJet showcases another ending diagonal pattern, further indicating a potential reversal and limited downside.