- Jet2 stock has been stuck in a small range since more than a month now.
- It did try to break out of this range but was rejected by a strong selling.
- 1170 has now become a highly strong resistance for the stock.
Jet2, a low-cost British airline, is the third largest scheduled airline in Britain. It was founded in 1983 and has a fleet of 102 aircrafts today. After the covid shock, the company became profitable for the first time since 2020 in the last financial year with a total operating profit of £394 Million.
Technical Analysis for the Stock
The stock has been stable with a constant sideways movement. The stock is low in volatility and is also weak in terms or volumes.
The stock traded sideways from the beginning of the year till July where it broke down from the range, hitting a new low of 1098 £. Since then, it saw stability and has been trading again in a range bound region between 1100 and 1170 £.
Volumes are yet not that high due to which an upward movement right now is a little difficult. Buyers are not very active in the market and this is another reason why one can expect a little more sideways movement in the upcoming weeks.
In a 1 hour time frame, one sees a buying momentum building up which tried to break the current range but faced strong rejection. One can see strong green candles which means buyers are entering in a good volume. More such volumes would be needed to breach this zone which might happen but not very soon.
Analysts have predicted the stock to touch 1800 £ levels by the year’s end, more than a 60% upside, which is a great positive for the investors. However, one must wait for the charts to give confirmation before entering.
Upside targets currently are 1170£ and 1200 £ which might be seen in the next 1 month. Chances for the stock to go down from here are less; but if that does happen, 1100 is the first strong support followed by the 1070 £ levels. The stock is currently in the middle of a zone, so a strong movement might be seen for either side.
Conclusion
The stock has seen a long price consolidation and a big upward move is expected in the upcoming weeks. Analysts and technical indicators indicate the same as well. One must wait for confirmation before entering. If the stock breaches the 1170£ levels with good volumes, those can be a good accumulation level too.
Important Technical levels-
Major support zones- 1100 followed by 1070 £
Major resistance zones- 1170 followed by 1200 £.
