IAG Share Price Forecast: A YTD High And More Room For Upside

Summary:
• IAG share price has gained in each of the last ten sessions, and there's good reason to expect further gains, with limited selloff risk.

International Consolidated Airlines Group (LON: IAG) share price hot streak continued on Monday, with the stock gaining 0.9 percent in the intraday session to hit YTD highs of GBX 200.9. A break above the GBX 200 psychological mark came on the tenth successive session of gains, underlining the strong momentum and positive sentiment surrounding the stock.

IAG share price profit and risk outlook

The airline conglomerate which owns British Airways, Vueling, Iberia, among other airlines, has shown strong bottom line as per its June quarterly earnings report, and is largely back to pre-pandemic levels. The company will focus on modernisation of its fleet which will see it acquire 140 new planes in the next five years. That will help it reduce operating costs related to fuel consumption and improve passenger experience.

The IAG share price is up by 29.8 percent YTD and has gained 17.1 percent in the last month. That signals strong buying momentum with a significant underlying incentive to buy. Despite the steep uptrend tracing back to early August, it has not been driven by a greed sentiment. Such a sentiment could have carried a selloff risk. Instead, the rise has been mostly sub-2% incremental gains, limiting pressure to take profit at this point.

IAG share price will likely stay on the upside, as a steady outlook and momentum around recent dividend announcement incentivise investors. That said, the geopolitical environment, global oil prices and the economic situation in the United States and the Eurozone carry potential shocks.

Stock market analysis

IAG share price will likely stay on the upside if the action stays above the pivot mark at 198.55. With that momentum in play, the upside will likely encounter initial resistance at 202.00. However, the bulls could break above that barrier and test 205.0 in extension if they strengthen their momentum.

Conversely, moving below 198.55 could trigger downside momentum, with initial support likely to be at 196.00. However, the sellers could breach that support if they extend their control. In that case, the upside narrative will be invalid, and the share price could potentially test 192.65.