IAG (LON: IAG) share price has been in a tailspin since its July peak. During this time, the stock of the British Airways owner has slid 6.84%. Technical analysis reveals a further 4.85% if the bears gain momentum in the coming days.
The UK equities have shown a strong rebound from their August lows. The benchmark FTSE 100 index has gained 236 points from last month’s low and is gaining momentum. On Monday, the index showed a minor loss, but IAG share price remained resilient. At press time, IAG shares were trading 1.26% higher than their previous close.
Since the release of International Consolidated Airlines Group’s (IAG) Q2 results, the shares have been in a downward spiral. During the second quarter of 2023, the airline’s passenger revenue upticked by 36% on a YoY basis. The increase in travel demand and high ticket prices contributed to this increase.
While the airline had a strong outlook for the rest of the year, it still wasn’t enough to keep the shares in an uptrend. Since the release of the second quarter results, the stock of the British Airways owner has corrected 6.84% with more downside on the cards.
LON: IAG chart shows that the shares are currently consolidating after a major correction. If the bears gain momentum in the coming days, a retest of the 200 MA at 152.8p is quite likely. To avoid this bearish IAG share price forecast, bulls need to break the 169p resistance level.
In case of a retest of the 200 MA, the upward trendline may also act as a diagonal support. I am very confident of a bounce from this region. A breakdown below the 200 MA would be very cataclysmic for the stock of the International Consolidated Airlines Group.
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This post was last modified on Sep 04, 2023, 16:28 BST 16:28