The IAG share price may have been trading higher for the past two days, but the stock may yet face significant headwinds as the probe into its planned acquisition of Air Europa expands.
The UK’s competition regulator is now investigating the merger, saying in a statement released on Monday that it had concerns about the impact of the union on market competition in the UK. The Competition and Markets Authority (CMA) will decide on the issue in January 2022.
The ruling will impact the IAG share price, which has struggled along with other airline stocks in the 3rd and 4th quarters of 2021.
IAG Share Price Outlook
The double top on the daily chart has been completed. However, the price action is now attempting a retest of the neckline following the breakdown of this support. If the bears block the pullback move at the broken neckline, the breakdown move towards the 136.64 completion point is triggered. This move also needs to take out the support at 143.94 to attain completion.
On the flip side, an upside break of the neckline truncates the breakdown move but would need to break beyond 167.54 to add credence to this truncation. 177.46 and 187.24 are additional targets to the north, corresponding to the 23 February and 13 May lows.
IAG: Daily Chart
Follow Eno on Twitter.