Virt. Portfolio : Buy EasyJet PLC at Limit price p935 .

This is a play on short term GBP bounce potential- See October 19th on GBP – . Easy Jet price evolution is strongly correlated to the Sterling  and as most Airlines to fuel prices.  We expect a short term bounce in GBP and believe most of bad news in terms of oil prices impact is already priced in.

PE is in 6 to 7 range and dividend yield (based on last dividend) above 6%. Price to book below 2.

  • ej-price
  • Stock is down 50%+ from highs in 2015 and 40% from Pre-Brexit levels.
  • Daily MACD has turned positive 2 days ago .
  • Positive Divergence Price/MACD.
  • Target 1200-1250 pence.
  • Risk limited to recent lows around 850 pence : SL below these levels.
  • ej-daily-241016
  • Bullish Engulfing pattern on weekly chart