Will IAG break support, or will it rise again back to 624p?

• The IAG range has developed since early December.
• Shares bounced off 583p support zone 5 times. Now trading 593p (at time of writing)
• Will the IAG pattern repeat itself, testing previous highs?
• Shares -5% from 2019 highs; +2.6% from 2019 lows; -4% year-to-date
• 4 Jan: Bernstein analysts say on airlines: “Given lower-than-expected fuel prices for 2019 […] there may even be some tactical upside in the near term,”
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading IAG – An Example

Let’s say you like the range, you think it’s heading back towards 624p again. You decide to buy exposure to £10,000 worth of IAG using a CFD, at the current price of 593p. To do this, you need £2,000.

Let’s assume IAG recovers back to 624p (+5.2%). Your profit would be £520, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. IAG falls 3% and hits your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.