The IAG share price has risen in the past two straight days as investors assess the company’s budget airline dreams. It is also rising as investors wait for earnings from some key global airline groups. The stock is trading at 182p, which is about 3% above the lowest level last week.
Aviation industry rebound
The aviation industry is set to rebound as more countries realize that Covid will continue being around for a while. As such, very few countries have retained their domestic lockdowns. And, a look at aviation data shows that more planes are currently flying.
Many countries are now rethinking their ban on foreign arrivals. For example, Australia is considering allowing foreign travellers who have been vaccinated. New Zealand, United States, and the European Union are also expected to end their ban on foreign arrivals.
All these trends will be positive for IAG, which owns companies like British Airways, Iberia, and Aer Lingus.
The stock is also rising as investors wait for earnings from some of the biggest companies in the industry. Delta Airlines is expected to publish its results later today. Analysts expect that the company made more than $8 billion in the third quarter and turned a profit.
Other airlines are expected to publish their results soon. United Airlines, American Airlines, and Southwest will publish next week on Tuesday. While IAG itself will not publish its results soon, these results will provide more details about the industry.
IAG share price forecast
The daily chart shows that the IAG share price has been holding steady in the past few days. The stock is trading at 182p, which is at an important resistance level. This price is slightly below the descending trendline that is shown in green. On a positive side, the 25-day and 50-day moving averages have made a bullish crossover pattern.
Therefore, the stock will likely keep rising as bulls target the next key resistance at 200p. On the flip side, a drop below 170p will invalidate this view.