At the end of 2024, Ryanair Holdings Plc (RYAAY) experienced significant developments in its stock performance, influenced by various market dynamics, mainly by a strong monthly demand imbalance at $39 per share. Understanding these movements through the lens of supply and demand imbalances can provide valuable insights for traders aiming to master price action trading.
In price action trading, supply and demand imbalances are critical in identifying potential entry and exit points. A demand zone represents a price level where buying interest is strong enough to overcome selling pressure, often leading to a price increase. Conversely, a supply zone is where selling interest exceeds buying, typically resulting in a price decline.
In 2024, Ryanair’s stock encountered a strong demand imbalance in the monthly timeframe. Supply and demand traders monitoring this zone would have recognized it as a potential area for initiating long positions, anticipating a price increase as demand outpaced supply.
Implications for Traders
For traders focusing on price action and supply and demand dynamics, the strong demand imbalance in Ryanair’s stock during 2024 offered a clear signal. Identifying such imbalances on higher timeframes, like the monthly chart, provides a broader perspective and can enhance the accuracy of trade decisions.
By recognizing the €39 demand zone, traders could have anticipated potential price increases and planned their entries accordingly. This approach underscores the importance of patience and the need to wait for price action to confirm the strength of a demand zone before committing capital.
Watch the video below better to understand supply and demand imbalances and stock price action.
This stock analysis from 2024 shows the stock trade idea before the surge happened.