IAG (LON: IAG) share price has seen a massive sell-off in the past few weeks. After a great start to the year, the shares are currently trading 25% below their YTD high of 173.58p. International consolidated airline stock is not alone in this negative price action, other airline stocks are also down massively.
IAG stock opened at 132.2p on Monday and dipped to 127.8 during its first hour of trading. However, LON: IAG turned positive as FTSE 100 gained a few points. The price tagged the 200-day moving average and rebounded. At the time of writing, the shares of the owner of British Airways are trading at 137.7p after gaining 3.33% in the day.
LON: IAG Rebounds With Other UK Equities
Last week has been pretty rough for the shares of UK companies. Banks were the hardest hit sector as faith in the global banking system got tested. The fall of the Silicon Valley Bank (SVB) sent shockwaves across the Atlantic, and the FTSE 100 dropped to its fresh YTD lows. Consequently, major airline shares, including IAG and EasyJet, also experienced a great sell-off.
Nevertheless, the intervention from the US and Swiss governments has given the markets some confidence, and the markets have bounced. The recent government-influenced takeover of Credit Suisse by its rival UBS Group has also given a sigh of relief to the global financial markets.
IAG Share Price Can Retest 150p Soon
Technical analysis of LON: IAG reveals some key levels that the price can retest in the coming days. At the moment, IAG shares are bouncing off the 200-day moving average after retesting it in today’s trading session. If the price holds this level, then I expect a retest of the 150p level soon.
This will be a key retest as it is a key psychological level that currently lies at a trendline. Even though the price has broken below the trendline, our IAG share price forecast remains positive as the bullish structure is intact. Another reason is the confluence of the 0.5 fib level in the region from where the price has bounced. Therefore, as long as the price holds the December low of 122.7p, the outlook will remain positive.
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