IAG share price turned green on Thursday as the airline stocks rebounded from weekly lows. At press time, the stock of the British Airways owner was trading at 160.65p after bouncing from its 200-day moving average.
On Thursday, shares of the International Consolidated Airlines Group (IAG) opened at 158.4p and dipped to 154.95p before recovering back above the 160p till press time. On the same day, the Bank of England kept the interest rates constant and vowed to keep them at record highs for a long time.
Surprisingly, the UK equities remained green despite a hawkish stance by BOE, suggesting that the markets had it already priced in. As a result, the FTSE 100 index which is the benchmark index of UK equities, gained 120 points and rose to its highest level since September.
Last week, airline stocks had a pullback as JPMorgan downgraded its rating for the stock of Air France, Lufthansa and IAG. The investment giant changed its rating on IAG share price to ‘underweight’ from the previously maintained rating of ‘neutral’. Additionally, it also lowered its price target for the shares from 2.8 euros to 1.45 euros.
At the moment, LON: IAG is holding up its 200-day moving average pretty well. For me, this level is a line in the sand for IAG share price forecast. In case of a breakdown from current levels, the 150p level may act as immediate support. However, considering the bullish market structure, another retest of the 169p resistance may happen first.
Another factor which may affect the price action of the UK shares is the FTSE 100 index’s ability to find strength above 7,685 points level which is a huge resistance. While the index is looking very bullish right now, it still needs to close a couple of weeks above the key level.
I will keep sharing my updated analysis on IAG stock on my X (Twitter) account where you can follow me.
This post was last modified on Dec 14, 2023, 14:03 GMT 14:03