IAG (owner of British Airways)
A range trading opportunity for you?
Will IAG break support, or will it rise again back to 624p?
- The IAG range has developed since early December.
- Shares bounced off 582p support zone 5 times since Oct. Now trading 598p (at time of writing)
- Will the IAG pattern repeat itself, testing previous highs?
- Shares -18.2% from 2019 highs; +8.7% from 2019 lows; -3.0% year-to-date
- 8 Jan: IAG Dec traffic +8.8% on previous year
- 4 Jan: Bernstein analysts say on airlines: “Given lower-than-expected fuel prices for 2019 […] there may even be some tactical upside in the near term,”
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading IAG – An Example
Let’s say you like the range, you think it’s heading back towards 624p again. You decide to buy exposure to £10,000 worth of IAG using a CFD, at the current price of 598p. To do this, you need £2,000.
Let’s assume IAG recovers back to 624p (+4.3%). Your profit would be £430, 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 falls 2% and hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.