- Summary:
- IAG share price has gained in each of the last nine weeks, and Friday's marginal decline is more of a pause. Here's why IAG will keep rising.
International Consolidated Airline Group (LSE: IAG) share price snapped a 13-session winning streak on Friday inching down by 0.1 percent to trade at GBX 207.30. Nonetheless, rejection at the psychological round figure mark of GBX 210.00 did not deny it the chance to record a successive ninth weekly gain. This signals an underlying bullishness that could help sustain the uptrend next week.
The momentum surrounding the IAG share price should help the stock make more moves to the upside. A return to profitability in the last quarter and a first dividend payout in September underline an impressive year for the airline juggernaut. In addition, it has a better Price-to-Earnings (P/E) ratio of 4.8, compared to competitors Air France-KLM’s P/E of 9.3 and Cathay Pacific’s P/E of 6.8.
Looking ahead, its growth strategy focusing on cost reduction and fleet modernisation is likely to pay off as it seeks to increase its margins. Also, a capacity growth target of 4%-5% between 2024-2026 is seen as largely achievable assuming the business environment does not grow sour. Meanwhile, a move to opt out of the Air Europa acquisition was seen as the right move and could help synergise resources for faster growth.
IAG share price forecast
The hourly chart on the IAG share signals that the buyers are likely to be in control above the GBX 206.8 pivot mark. With the upward momentum in play, the first resistance will likely be at GBX 209.3. However, if the bulls extend their hold on the market, it will favour them to break above the first resistance and test GBX 212.0.
Alternatively, the price could move below GBX 206.8, in which case the sellers will be favoured to take control. That could see the first support established at GBX 203.6, but extended bearishness could breach that level. As a result, the upside narrative will be invalid, and the price could move lower to test GBX 201.2.
