Market News & Analysis
Warren Buffet's "too many planes" hits a nerve with easyJet investors
Fiona Cincotta May 5, 2020 9:19 PM
Berkshire Hathaway has sold out of its entire US airline holding. Despite paying between $7 - $8 billion to buy around 10% of 4 US airlines across the years the trades were closed recouping just $6.5 billion. Warren Buffet admitted that he was wrong about that trade after the coronvirus outbreak created new dynamics in the industry.
Stelios (34% shareholder) has called for a shareholders meeting, which has been agreed to and is due to go ahead on 22nd May. Stelios could attempt to oust the board of 11 directors including the CEO and the chairman at the meeting. In the meantime, easyJet shares are likely to remain under pressure with any gains capped.
Despite advancing over 2% today, the stock is 60% down from its pre-covid-19 price. The stock has under-performed the FTSE from its March 19th low.
easyJet dropped through its 50 sma on 4 hr chart, as it trades with a negative bias.
Immediate support can be seen at 509 (yesterday’s low ) 464p (low 3rd April) and 410p low 19th March.
Immediate resistance can be seen at 597p (50 sma). A move over strong resistance at 700p could indicate the start of a more bullish run.
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