Will IAG turn, or will it continue to rise towards 661p?

• Breakout above resistance at 626p to trade 630p (at time of writing).
• The ‘trend is your friend’. Will it continue towards 661p?
• Shares -14.8% from 2018 highs; +13.2% from 2018 lows; +1.9% year-to-date.
• 23 Jan: Bernstein says IAG should see 2019 earnings growth
• 8 Jan: IAG December passengers +8.8% on capacity +9.4%
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading IAG – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of IAG using a CFD, at the current price of 630p. To do this, you need £2,000.

Let’s assume the IAG trend continues upwards to 661p Nov highs (+4.9%). Your profit would be £490, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. IAG breaks lower, falling 2% and it hits your stop-loss. Your loss would be £200.

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