IAG (LON: IAG) share price has rebounded strongly from its March 2023 lows. Currently, the shares of International Consolidated Airlines are 18%, up from the lows. Our analysis shows that there is a high chance that the ongoing recovery turns out to be a dead-cat bounce.
After a 2.98% price increase during the first trading session of the week, IAG shares opened higher on Tuesday. However, the stock couldn’t gain momentum as the FTSE 100 remained sideways. Consequently, the shares fell from their daily high of 154.5p and were changing hands at 150.7p at press time.
IAG Gets Fined $135k By US Transportation Department
According to the most recent news, the owner of British Airways, International Consolidated Airlines (IAG) has been fined by the US Transportation Department over a tarmac delay in 2017. As per British Airways, the airlines didn’t consider the incident to require enforcement action. Nevertheless, the US regulator fined the airlines $135,000 for a 4-hour delay in 2017.
In other news, International Consolidated Airlines Group is setting up its legal and communication team for the race to buy TAP Air Portugal. The national flag carrier of Portugal is expected to be up for privatization soon. Apart from IAG, Air France-KLM and Lufthansa are also expected to take part in the buying race.
IAG Share Price Needs More Momentum
The LON: IAG stock chart shows a clear break from the uptrend on the daily timeframe. As long as the price remains below the upward trendline, the IAG share price forecast will stay bearish. Due to this reason, the ongoing bounce might end up being a bull trap before a bigger move down.
Therefore, it is better to wait for a confirmation before buying the stock hastily. Currently, the price is retesting the key psychological level of 150p, which is also a 0.5 Fib retracement level. Rejection from this level can send the shares to their 200 MA, which lies at 130.8p.
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