The IAG share price is approaching an important resistance level a week after it released mixed earnings. The stock is trading at 216p, which is slightly below the important resistance level at 240p.
What happened: Last week, IAG, the owner of British Airways, unveiled its annual report. In it, the company revealed that it lost more than 7.4 billion euros in 2020 as the pandemic forced the firm to park most of its planes. The company did not offer any guidance.
However, the IAG share price has done relatively well as investors bet that the airline industry will recover. Furthermore, most developed countries like the United States and the UK have ramped-up their vaccination process.
As a result, IAG stock has risen by more than 40% this year, becoming the best performer in the FTSE 100. It has also outperformed the Global Jets ETF that has risen by about 20%. This ETF includes companies like United Airlines, American Airlines, and Southwest, among others.
The daily chart reveals that the IAG stock has done reasonably well in the past few months. It has risen by more than 140% from its lowest level last year. Also, this uptrend has been supported by the 25-day and 50-day weighted moving averages (WMA). The stock is slightly below the resistance at 240p, which was the highest level on June 8. It is also attempting to move above the 61.8% Fibonacci retracement level.
Therefore, I believe that the upward momentum will continue as bulls target the 50% retracement level at 268p. This price is about 25% above the current level.
