IAG (LON: IAG) share price failed to flip the 169p into support and is now trading at 167.6p. On 28th July, the earnings report of IAG acted as a catalyst for the share price to cause a 10.4% surge. However, the bullish momentum weakened in the following days, and the share price is now 1.8% down from last week’s high.
The FTSE 100 also suffered last week, falling by 2.5%. The effects of this decline also got reflected in the share price of the British Airways owner. Investors will remain on their toes for the rest of this week as the critical inflation data of the US and China will be published this week.
British Airways Announces Wage Hike
The non-pilot and non-management employees of British Airways are likely to receive a 13.1% increase in their pay. This increase will be for 18 months, accompanied by a £1000 one-off payment. As per the airlines, the salary might also be adjusted according to inflation.
In other news, Deutsche Bank has increased the price target for IAG share price. The investment giant raised the price target from £1.65 to £2. However, Deutsche maintained its hold rating on the airline stock. On Tuesday, Goldman Sachs also increased its IAG price target from £2 to £2.1 while maintaining a neutral rating.
IAG Share Gets Rejected From Key Resistance Level
The LON: IAG chart shows that the price is currently retesting the resistance level of 169p. After the earnings report, the bulls were able to break the 169p resistance level. However, they failed to consolidate above that level, and the price plummeted below the key level.
If the price fails to break above the mentioned resistance level, IAG share price forecast might flip bearish. This could result in a deeper pullback toward the 150p-155p region. The upcoming July CPI data of the UK and the US will keep the stock price volatile for the rest of this week.
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