IAG (owner of British Airways)
A trading opportunity for you?
Will IAG break support, or will it rise again back to 488p (+8.7%) ?
- Rising support since mid-June; 3 bounces
- Fell today due to 9.7% dividend; Now trading 449p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 488p (+8.7%)?
- Shares -32.2% from 2019 highs; +4.9% from 2019 lows; -26.7% year-to-date.
- 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 488p again. You decide to buy exposure to £10,000 worth of IAG using a CFD, at the current price of 449p. To do this, you need £2,000.
Let’s assume IAG recovers back to 488p (+8.7%). Your profit would be £870, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 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.