Ryanair shares could take off if they do this
8th September 2021 07:58
by Alistair Strang from interactive investor
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After trading a tight range all year, independent technical analyst Alistair Strang studies the charts for signs of life.
Ryanair’s (LSE:RYA) share price has successfully recovered to pre-pandemic highs but, for the last nine months, has essentially flatlined, the share price fluffing around within a €2 trading range.
Passenger numbers, apparently already showing a substantial improvement, will doubtless surge in 2022 as familiarity with vaccines, Covid case handling, and more efficient methods of handling cattle at airports are introduced.
Their share price has proven directionless in 2021, the price still needing to exceed €17.6 to give an indication some price recovery is coming.
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From a chart perspective, there’s a perfect example of a “glass ceiling”, the share reaching a flight level first defined at the start of 2018 and effectively maintained as a ‘thou shall not pass” level since.
Movements now above €17.6 calculate with the potential of an initial €19.5 with our secondary, if exceeded, working out at €22 and a new all-time high. This, for an airline which is always rated “worst” for customer service, still surprises us.
Ryanair share price needs below €14.5 to justify early onset concern.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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