On the first trading day of the week in London, airline stocks are trying to shake off the losses of the previous week but appear to be having a hard time advancing significantly. The IAG share price is trading 0.91% higher this Tuesday but is barely hanging on to these gains after dropping off from intraday highs. This follows the difficulty of airline stocks to attract significant buying interest due to the primarily negative headlines that have hit the industry all month long.
InvestingCube's S&R Levels
Last week, the IAG share price took a significant hit after its Aer Lingus operations cancelled 51 flights after a systems outage. There was also cancellation of 100 short-haul flights by IAG brand British Airways to cut noise levels during Monday’s funeral of Queen Elizabeth II.
The IAG share price has also been affected by the recent strikes embarked on by various categories of airline workers in Spain and France. Iberia Express, another IAG brand, scrapped 92 flights over a cabin crew strike in August. In a holiday period that was supposed to usher in a full recovery of pre-pandemic air travel volumes, brands like IAG have been forced to contend with loads of chaos from several fronts, all of which have sent investors packing.
IAG Share Price Forecast
The price action remains range-bound, with 110.26 serving as the ceiling and 102.68 acting as the floor of the range. Any further downside action will depend on the bears breaking down this floor, allowing 96.74 () to become available as the immediate downside target. The 29 September 2020/30 October 2020 double bottom at 88.92 forms the additional downside target if the bulls do not defend 96.74.
The 110.26 ceiling (9 October 2020 high and 7 March 2022 low) must go if the bulls are to push toward the 118.34 resistance (11 August low/19 August high). Above this level, 124.48 forms an additional barrier to the north. If the bulls remove this barrier, then we will have an advance that targets 130.12 (6 June 2022 high). 136.64 is an additional harvest point formed by the 30 May high.