IAG (owner of British Airways)
Is this trend a good trading opportunity?
Will British Airways owner IAG turn, or will it continue falling to April ’17 low of 516p?
- Shares -18.6% since Feb highs.
- Shares broken below October’s 547p lows.
- Now trading 543p (at the time of writing).
- Will the negative momentum continue towards April ’17 low of 516p?
- Shares -18.5% from 2019 highs; currently trade at 2019 lows; -11.9% year-to-date.
- 1 Mar: Macquarie says British Airways is overly optimistic in its 2019 guidance
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading British Airways – An Example
Let’s say the trend appeals to you, you think it’s likely to continue. You decide to sell exposure to £10,000 worth of British Airways using a CFD, at the current price of 543p. To do this, you need £2,000.
Let’s assume the British Airways trend continues to April ’17 low of 516p (+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 3% from the current price. British Airways rises 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.