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Home / Trade Alert / Buy – International Consolidated Airlines (IAG)

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Buy – International Consolidated Airlines (IAG) - 16 November 2017

Trade Parameters

  • Opening Price: 600p
  • Stop Loss: 575p (25p/4.2% below)
  • Profit Limit: 670p (70p/11.7% above)
  • Reward vs Risk: 2.8x
  • CFD Margin: 5%

Observations – For

  • Bounce off 580p support
  • Bounce off 200-day moving average
  • Stochastics oversold
  • Momentum on the rise

Observations – Against

  • MACD still negative
  • Momentum still negative
  • Yet to break above 50/100-day MAs
  • Stochastics yet to break back above 20

Analyst Comments

Bullish technical set-up. Oil prices off their highs. Peers spending money ordering planes. Supportive 4% dividend yield. Recently increased medium term profit targets. Latest traffic data solid

Consensus is bullish with 91% brokers either positive or neutral, and 88& of broker targets suggesting upside potential from current levels. In fact consensus is looking for a rally to beyond our short-term trade objective, to near a 20yr high. The average target from all November broker updates is 714p, while the minimum is 600p.

Next Event: November traffic stats, 5 Dec

Latest Broker 12-Month Consensus:  47% Buy, 44% Hold, 9% Sell (full breakdown on request)

Source: DowJones Newswires, Reuters News, Bloomberg  or Company Press releases

Broker Ratings & 12-Month Target Prices (Bloomberg)

7-month (daily); MACD, Stochastics, Relative Strength Index, Momentum & Trend Strength

Share 1wk 1m 3m 6m 1yr 2yr 3yr 4yr 5yr
Perf % -0.6 2.2 10.6 27.8 68.9 108.5 100.0 68.5 88.0
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Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research

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