IAG share price is up 0.89% on Tuesday despite a bearish sentiment in the UK stock market. The negative sentiment in the markets is driven by the above forecast UK PMI data. This suggests that today’s price action could just be a dead cat bounce.
The shares of the British Airlines owner failed to break back into the uptrend earlier this month as they faced a rejection from the 165p level. As a result, the price is now trading below its 200-day moving average which lies at 154.4p.
The most likely scenario now seems to be a retest of the 144p support level where lies a demand zone. However, nothing goes down in a straight line and there could be a few bounces on its way down.
Technical analysis backs this IAG share price forecast as there is no visible resistance before the 144p level. The only way to avoid this bearish outlook is to find strength above 200 MA which seems very difficult under the current market conditions.
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