Friday, September 29

IAG: As long as it doesn’t break 2.10 it would still be in a bearish channel

Iberia has asked the Government to intervene to save the merger with Air Europa. According to the president of Iberia, Javier Sánchez-Prieto, the purchase of Air Europa will give a boost to Barajas becoming a great ‘hub’, to compete with Amsterdam, Frankfurt or Paris. Sánchez-Prieto calculates that up to 2.4 billion travelers could be captured by 2030.

At a technical level, in the case of IAG (Iberia) we have seen a recovery after leaving a double bottom, at 1,484 euros. That double floor has already been completed and has fulfilled the projection, reaching the area of ​​1.95 euros. The long-term average is bearish, although the price is above, “that’s positive”, says Sergio Ávila, IG market analyst.

What you have to watch now is if you are able to hold above average without losing previous support, at 1.87 euros. From here, we have to see if it is capable of breaking that succession of lower highs, which would be the 2.10 area. While don’t break that 2.10 level still inside a down channel.

The omicron variant is still present and the WHO has said that more variants may emerge, which penalizes sectors that depend on the mobility of people, as is the case with IAG. “The recovery it has had in the short term is very good, but the theoretical objective due to the double bottom would have already been met.”

Check here the technical indicators of Investment Strategies for IAG.