IAG (owner of British Airways)
A trading opportunity for you?
Will IAG break support, or will it rise again back to 725p ?
- IAG has shallow rising support since May.
- Bounced 13 times, most recently from 595p. Now trading 604p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 725p?
- Shares -15.9% from 2018 highs; +4.5% from 2018 lows; -7.3% year-to date
- 3 Oct: IAG reports September passengers +7.1% versus last year.
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading IAG – An Example
Let’s say you like the range, you think it’s heading back towards 725p again. You decide to buy exposure to £10,000 worth of IAG using a CFD, at the current price of 604p. To do this, you need £2,000.
Let’s assume IAG recovers back to 725p (+20%). Your profit would be £2000, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 5% below 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.