- Summary:
- IAG's stock price challenges the 210p hurdle following solid financial results and high demand for Transatlantic travel. Should one consider purchasing IAG stock now that it is getting ready for a possible breakout?
IAG’s stock has increased substantially this year, surging over 130% from its 2023 lows. It is currently trading near a significant resistance level of 210.00p, as it is currently priced at 204.40p, indicating a possible decisive point in its future direction.
Strong Financial Results Supporting the Stock
IAG’s strong financial performance is a key factor driving the rally in IAG’s share price on the LSE. During the initial six months of 2024, IAG reported a profit of €1.3 billion, exceeding predictions from the market. The €0.03 dividend announced by the company has increased investor confidence, indicating IAG’s robust cash flow and dedication to providing value to shareholders.
Technical Outlook: Can IAG Break 210p?
Current Price: IAG is trading at 204.40p, with a recent drop of 1.40%.
Resistance Level: Key resistance sits at 210.00p. The stock has tested this level recently but has yet to break through.
Support Levels: Strong support can be seen at 187.65p, providing a safety net if the price fails to maintain its current levels. Below that, another support zone lies at 179.35p.
Rising Pattern: Since mid-August, the stock has been consistently increasing, with steady higher highs and higher lows, showing strong bullish momentum.
Golden Cross Pattern: The chart suggests there may be a golden cross formation, indicating a potential extension of the upward trend.
Possible retreat: Should IAG be unable to surpass the 210.00p resistance, it may retreat to 187.65p or possibly as low as 179.35p
Currently, traders have a tentative hope for the future success of IAG. The financial robustness of the airline group, combined with technical signals, indicates that IAG may experience additional increases as long as it surpasses the 210p barrier.