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IAG Share Price Plunges To Fresh Weekly Lows – Is 150p Next?

IAG (LON: IAG) share price has been stagnant since the start of this week. This failure of any significant movement came after a 5% correction in the share price in the last few weeks. The major reason behind the correction is another rejection from the 169p resistance level.

FTSE100 is on a roll today as the UK index is up 1.1%. The index is recovering from last week’s low of 7254 points and stands at 7340 points at press time. However, this bullish movement in the index was not reflected in the IAG shares, and the air carrier’s stock was down 0.2% till press time.

IAG Signs Sustainable Aviation Fuel Agreement With Microsoft

IAG and Microsoft have signed a joint agreement for the purchase of 14,700 tons of sustainable aviation fuel. Microsoft listed its aim to reduce its carbon footprint in air travel as a main reason for the agreement.

In other news, AlphaValue has noticed improvements in IAG share price. The research firm has upgraded the rating for the British Airways owner from “reduce” to “buy”. They listed the strong Q2 earnings that beat the analysts’ expectations by a considerable margin as a reason for the upgrade.

IAG Share Price Forecast

The chart for LON: IAG shows that the price has seen a 5% correction from the 169p resistance level. The British Airways owner’s shares were changing hands at 160.95p till press time. Price is on track to meet my previous forecast, where I predicted the retest of the trendline.

IAG share price forecast is looking bearish after a rejection from the 169p level. In the coming weeks, the price may retest the 152p support level. This is due to the confluence of the trendline and the 200 MA. To avoid this bearish outlook, the shares need to break above the 169p resistance level.

You are also welcome to follow me on Twitter, where I’ll keep sharing my updated outlook on IAG and my personal trades on the UK shares.

IAG share price chart
LON: IAG Chart