IAG share price fell to its lowest level since March 2023 on Wednesday. However, the price rebounded strongly immediately and averted a breakdown below the 144.35p support level. At press time, the shares of the British Airways owner are changing hands at 147.1p, up 1.6% on the daily timeframe.
On Wednesday, UK stocks gave mixed signals as the FTSE 100 index recovered 0.25% on the daily chart. This can be attributed to Tesco increasing their yearly profit forecast by 3%. However, the bearish sentiment still prevailed in the FTSE 250 index as it lost 17 points on the same day.
The British Airways owner and Aurrigo International have announced their partnership to start trials for self-driving baggage and air-freight vehicles. The initial development and trial costs are expected to be 250,000, and simulation tests may start in October. The partnership expects to deploy the first batch of vehicles as soon as 2025.
In other news, JP Morgan has adopted a bullish stance regarding IAG share price as they increased their price target from 2.5 to 2.9. The American bank expects the demand for air travel to rise in the future despite the rising fuel prices. However, not all banks share the same view, as Bernstein announced a 20p cut in their price target for IAG.
LON: IAG suffered a 15% correction after it was rejected from the 169p resistance level back in August. The shares of the British Airways owner have also slid below the diagonal support level and are retesting their April 2023 lows for support.
The overall IAG share price forecast remains bearish, but the bullish divergence on the Relative Strength Index (RSI) points toward a relief bounce. In case of a strong rebound from the current level, I expect the price to rally 4.5% from the current level towards 155p, which is the 200 MA.
This post was last modified on Oct 04, 2023, 15:08 BST 15:08