The IAG share price continues its recovery in today’s trading session and is up by almost a percentage point, extending yesterday’s price 2.5 per cent price surge. Since hitting October’s monthly price low of 90.48, IAG share price has surged by 30 per cent in the markets to today’s price of 116.5p.
The current rebound of the IAG price has come despite the recent announcement by the UK government that inflation in September hit a 40-year high of 10.1 per cent. However, a recent report by IAG indicated that inflation had not impacted their customers’ bookings, which remained at expected levels.
The rebound of the IAG share price has partly been driven by the recent surge in traffic metrics for both regional and international flights. The company also announced last month that they had a better-than-expected quarter ending September, in a report released last week.
They indicated their operating profits had jumped to €1.2 billion beating the market consensus of €820 million. The positive numbers from the company indicate it was well received, based on the aggressive bullish trend of the past three weeks.
With bookings remaining strong and regional and international travel rebounding, I expect the current bullish trend to continue for the next few trading sessions. Currently trading at 116.5p, the IAG share price is approaching its two-month high of 123.24.
Looking at the chart below, it is likely that we will continue to see the share price continue to make gains in the market. Therefore, the current bullish trend should at least hit the 123.24 price level and possibly trade above it. Considering that the share price has not been impacted by recent macroeconomic data such as high inflation, I expect the current bullish trend to continue despite the worsening market conditions in the UK. However, a trade below 105p will invalidate my analysis.
This post was last modified on %s = human-readable time difference 12:10