74.07% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.07% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
header_logo
Language
    rch
    Client Portal
    Client Portal
    Open account
    Start trading
    rch

    Ryanair share price in the brace position ahead of H1 earnings

    Ryanair share price (RYA) could experience turbulence in the wake of a key update.

    Learn more about shares trading with ATFX

     

    Airlines routed by COVID-19

    If describing a fundamental situation as the perfect storm for a stock or sector can sometimes seem like it is overdone, the story for Ryanair shares and the plight of discount airline in 2020 could not have been more challenging. Perhaps the only plus point one can dig out is that the lower cost of fuel in the wake of the pandemic might have helped Ryanair on a marginal basis. However, the story for those holding Ryanair shares has generally been one of woe, given the way that the sector has been hit on multiple fronts. 

     

    Ryanair share price hit by lockdowns and quarantine

    By definition lockdowns and quarantine are going to damage all parts of the travel industry. This can be from passengers simply not being allowed to fly, to not being able to afford to fly due to job insecurity or furlough. However, perhaps the greatest damage has been with respect to anti-COVID-19 measures changing constantly. Ryanair itself has moved goalposts too, with capacity over winter 2020 to be reduced from 60% to 40%. Not surprisingly, it made this move after traffic in September fell by 64%. All of this has been part of a dash to lower costs as revenues have tumbled, with action taken in Q1 in the wake of the first pandemic wave to slash expenditure by 85%.

     

    H1 earnings in focus for Ryanair shares

    The forthcoming report on November 2 from Dublin based airline is likely to be very revealing, as we shall find out a number of aspects regarding the fundamentals that lie behind shares of Ryanair. For instance, whether the cost cutting and capacity cuts have stemmed losses in a meaningful way. We will also discover whether the impact of COVID-19 is still worsening, or there has been a degree of stabilisation. While Ryanair shored up its balance sheet in September via a placing of €400m, we have yet to see whether this is enough. In the meantime, analysts’ forecasts are for a 61% decrease in revenue to $1.33bn. This compares to $3.42bn a year ago. But perhaps the worst aspect predicted is the swing in earnings per share, from $4.50 to a loss of 25 cents.

     

    Ryanair share price forecast: massive resistance towards €13

    Like many sector counterparts, shares of Ryanair hit the floor near €8 in March as lockdown measures were introduced. This was ironically only a couple of months after peaking at €16.96, almost as if in January those holding Ryanair shares felt they could ride out the burgeoning COVID-19 crisis. What is interesting currently is that the stock of Ryanair has managed to make back half the losses since March. However, unless the forthcoming H1 update from the airline reveals very positive fundamentals, strategically technically traders would be assuming post June resistance at €13 will mark the ceiling for the shares, and a possible return towards the €8 could be seen early in 2021.

    To see all upcoming news and data releases that’ll have an effect on the financial markets, check out our Economic Calendar. It’ll cover all major releases from global economies and give you the exact time the release is due, the previous data, forecast data and actual data (once released).

     

    RYA share price daily chart

    Daily chart showing Ryanair share price daily movements for 2020

     

    Looking to learn more about risk management and how it can benefit your trading? Check out our Risk and reward ratio article for more insight.

    Take the opportunity to develop your risk management strategy. Understand five key risk management techniques to help you look after your funds.

    Last Updated: 30/10/2020

    This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


     

    Recent news

    Bitcoin - BTCUSD Cryptocurrencies
    Bitcoin price bubble re-emerges, how high can BTCUSD reach in 2021?

    The mania in cryptocurrencies is back, and Bitcoin prices, BTCUSD, are just 1200 USD from ...

    Shares share price earnings stocks Walmart
    Walmart shares price pandemic challenge

    It can be said that for retailers of all shapes and sizes 2020 to date has been a challeng...

    Indices Shares share price earnings stocks Cineworld
    Cineworld share price could slump to 33 from 44.79 as cash reserves run out

    Cineworld share price had a stellar return of 331.23% from its October low to November hig...

    Shares share price earnings stocks Topps Tiles
    Topps Tiles share price hit by early 2020 profits warning

    It can be said that there are few stocks and sectors outside the pharma area who can prove...

    Shares share price earnings stocks iQIYI
    Bullish sentiment for the iQIYI share price

    It is usually the case that even with the most bullish of stocks and where market sentimen...