IAG (LON: IAG) share price faces headwinds as bearish sentiment surrounds the UK equities. The share price rose to its yearly high of 173p in February 2023 before seeing a 22% correction right after. The shares for the British Airways owner are trading at 150.9p, down 1.82% till press time.
The British indices are plunging ahead of the Bank of England’s meeting later this week. The FTSE 100, which is a benchmark index of the top 100 companies in the UK, plummeted by 58 points on Monday. The FTSE 250 is down 1.8% and lost 340 points during the day.
IAG Receives Upgrade From Investment Banks
Last month, several banks upgraded IAG shares after noticing strong half-yearly performance reported by the British Airways owner. The German investment bank, Deutsche Bank, increased their price target from £1.65 to £2. The American investment bank, Goldman Sachs, also increased its IAG share price target to 2.1 from £2.
The CEO of IAG also announced flight capacity hitting 94% of its pre-pandemic levels. The CEO attributed the recovery in the demand for air travel as the reason for this recovery. He further claimed that 80% of the passenger revenue has already been earned by pre-booking for the third quarter. The shares are currently standing 13% below their yearly high.
IAG Share Price Forecast
The following LON: IAG chart shows that the price suffered a strong rejection from the 169.5p resistance level last week. Additionally, the price has been consolidating under the upward trendline since last week. The chart also shows the price is trading well below the 200 MA level, which is a bearish sign.
The IAG share price forecast has flipped bearish as the price has broken below both the upward trendline and the 200 MA. If bulls fail to hold the July low of 149p, I expect the price to retest the 127p support level in the coming months.
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