A range trading opportunity for you?

Will IAG break support, or will it rise again back to 714p?

• The IAG range has developed since May.
• Bounced off 649p zone 8 times since May. Now trading 663p (at time of writing)
• Will the IAG pattern repeat itself, testing previous highs?
• Shares -9.8% from 2018 highs; +12% from 2018 lows; +1.9% year-to-date
• 25 Sept: Bernstein remains bullish despite headwinds and ups target to 735p in anticipation of cash piling up in coming years
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading IAG – An Example

Let’s say you like the range, you think it’s heading back towards 714p again. You decide to buy exposure to £10,000 worth of IAG using a CFD, at the current price of 663p. To do this, you need £2,000.

Let’s assume IAG recovers back to 714p (+7.7%). Your profit would be £770, 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.