Will IAG turn, or will it continue beyond 719p August high?

• The chart shows the IAG price action since late April.
• Shares in a 3-week uptrend from 552p October lows; now at 638p.
• Shares -13.1% from 2018 highs; +15.5% from 2018 lows; -2% year-to-date.
• Oil prices are now trading at 7-month lows, helping airline shares that benefit from low fuel costs.
• The shares have risen over 10% in the past 3 weeks. Will this momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading IAG – An Example

Let’s say the trend 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 638p. To do this, you need £2,000.

Let’s assume IAG trend continues to the 719p August high (+12.7%). Your profit would be £1270, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. IAG falls 5% and hits your stop-loss. Your loss would be £500.

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