Will IAG break resistance, or will it fall down to 582p again?

• 582-666p sideways channel since late October.
• Now trading 651p (at time of writing)
• Will the pattern repeat itself, falling back to 582p?
• Shares -10.6% from 2018 highs; +18.8% from 2018 lows; +5.5% year-to-date
• 18 Feb: Citigroup says IAG bets are gaining traction
• 11 Feb: IAG has no plans to designate UK shareholders as non-EU persons
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

Click to enlarge

Trading IAG – An Example

Let’s say you like the range, you think it’s heading back towards 582p again. You decide to sell exposure to £10,000 worth of IAG using a CFD, at the current price of 651p. To do this, you need £2,000.

Let’s assume IAG falls back to 582p (-10.6%). Your profit would be £1060, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. IAG rises 4% and hits your stop-loss. Your loss would be £400.

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