IAG’s share price in today’s trading session has surged by 3.7 per cent to trade at 145p. The price surge is a continuation of the past three days which have also seen the prices rise by over 8 per cent. The current bullish trend comes days after reports indicated that the AIG acquisition of Europa was still on track.
According to IAG Chief Executive Luis Gallego, the negotiations of the company’s acquisition were still in progress. However, Gallego indicated that the talks and the acquisition process could take up to 18 months to complete. The CEO, however, did not provide more details about what the deal entails or how much they would pay for the acquisition of the airline.
However, the announcement underpinned the company’s commitment to expansion. Since its founding in 2010, when British Airways and Iberia merged, the company has built its brand by purchasing similar airlines. This has included now-defunct BMI, Aer Lingus, LEVEL, and Vueling. In 2018, IAG attempted to purchase Norwegian. However, the acquisition was unsuccessful and the deal fell apart. With the timeline, calendar, and deadlines already set for the acquisition of Europa, investors in the company are likely to have found new optimism, resulting in the current price rise.
Looking at the daily chart, the prices of IAG have been on the rise in the past three consecutive trading sessions. In today’s trading session, the company opened the markets trading at 141p. Since then, IAG’s share price has risen by more than 3 per cent, to currently trading at 145p.
Using the daily, the prices are bouncing from a support level of 131p, after days of trading sideways. Therefore, I expect the prices of IAG shares to continue with the upward move. There is a high likelihood that the prices will hit the 151 resistance level. There is also a likelihood of breaking the resistance level to the upside. This will possibly see the shares trading at above 160p.
This post was last modified on %s = human-readable time difference 22:12