IAG (LON: IAG) share price appears to have found support at the 200 MA level. The shares of the British Airways owner are changing hands at 155p, showing minor gains at press time. The chart below also shows that the price has broken below the upward trendline and is currently trading 4.26% below last week’s high.
The FTSE100 continues its recovery streak for the fourth week in a row. This recovery in the UK equities can be attributed to the recently reported increase in commodities demand in China. The index currently sits at 7500 points, up 0.3% on Monday.
IAG Stock Receive Upgrade From AlphaValue
IAG impressed investors as the company announced amazing Q2 results. The reported results also beat analyst expectations by a significant margin. AlphaValue took notice of this, and the research firm upgraded the rating for the stock of British Airways owner from “reduce” to “buy”.
Earlier in August, the United Trade Union negotiated a 13.1% pay raise for the 24000 British Airways staff. IAG also agreed to add a one-time payment of 1000 pounds and vowed to increase further to adjust for high inflation in the British economy. IAG share price are trading 25% above their yearly low.
IAG Share Price Bounces Off 200 MA
The chart for LON: IAG shows the price trading below the upward trendline after a slight bounce from the 200 MA. I had predicted the retest of the 200 MA in my previous analysis, which occurred last week. However, the bulls still seem to be lacking momentum.
The IAG share price forecast has a strong chance to flip bullish, provided the price stays above the 200 MA. In case of a strong bounce, the bulls can expect a rally towards 165.5p. On the other hand, a breakdown below 153.4p will invalidate any bullish forecast. In this case, I expect a 16.6% correction toward 127.8p, which is the March low.
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