IAG’s share price is up by more than seven per cent in today’s trading session. The surge comes after two days of the prices trading sideways during a market correction after another surge that saw IAG rise by 11 per cent in four days. In my April 15 IAG share price prediction article, I highlighted how the announcement of the Europa takeover deal was likely to impact the share prices.
In the analysis, I indicated a likelihood of the news being received positively by investors resulting in price gain, whereby I expected the prices to trade above the 151p resistance level. Today, the share price has finally broken the resistance level after a seven per cent price surge. The prices also look poised to continue with the current trend throughout the session, and there is a high likelihood of IAG closing much higher.
The current surge in the markets has seen the company top the FTSE 100. The current bullish has come despite uncontrollable factors such as the rising cost of fuels and more Covid-19 cases coming from China. The company is also facing fierce competition from its US transatlantic rivals, United Airlines, who are looking to maximise the recent missteps by British Airways.
IAG prices have been trading within a tight margin of 131p and 151 support and resistance levels, respectively. However, following two days of market corrections, today’s trading session has broken out of the support and resistance market structure after a seven per cent surge and is currently trading at 154p. There is also a high likelihood that the current bullish move is a trend reversal based on the Williams Alligator and the RSI indicators readings, which show a strong bullish move.
Therefore, I expect IAG share prices to continue with the upward move. There is also a high likelihood of the prices hitting the next resistance level of 180p. The current bullish move is also likely a trend reversal which means we will be in a bullish market in the coming weeks.
This post was last modified on %s = human-readable time difference 18:01