IAG (Iberia) is trying again in the market. And he does it like the great exponent of recovery of one of the sectors, not only hardest hit by the pandemic, but probably the one that is having the hardest time to go back to levels prior to Covid-19. And although there is still a long way to go, the truth is that the upward momentum of the value started from the levels of 1.605 euros per share, its latest low at the end of mid-September remains.
However, the truth is that Courage is taking a breather up to the level of 2 euros per share, with a fall of 5.5% in the last two sessions, which, however, did not obscure by far the good work of the stock in the last 20 sessions. We are talking about revaluations that almost reach 21%. So far this year, IAG’s progress has reached 13%.
As confidence returns to courage, cautiously and waiting for resistance to break at 2.20 euros per share, with Alphavalue recommending adding to the value with target price of 2.51 euros per share and Deutsche Bank that returns to bet on buying the security with a target price that rises to 260 pence from the previous 225, given the improvement in expectations with transatlantic flights. At the exchange rate in euros, 2.94 per title, with a market potential of 45%.
For Diego Morín IG analyst, in the case of IAG “The value made ground around 1.60 eurosAs the lifting of restrictions by European citizens towards the United States, it caused a very strong rebound in value, he got above 2 euros, in a market that has sustained that level quite well ”.
And he adds that, right now, “lThe key is at the level of 2.20 euros per share, which is where the market has that short-term bearish guideline joining those last decreasing highs. I would wait, therefore, to see if the market responds very well to that area of 2.20 euros, because it could have an extension to the area of 2.50 euros ”.
At IAG “the recent short-term recovery, which leaves us with a minimum to work with from 1.60 euros per share, slows down at the height of its 200-period simple moving average or long-term, as well as in the area of previous supports, now resistances, around 2.20 / 2.102 euros per share. For the moment, we maintain a cautious attitude in a context of moving averages cut to the downside ”, he highlights. José Antonio González technical analyst at Ei.
IAG on daily chart with mean amplitude range in percentage, MACD oscillator and trading volume
Meanwhile, the premium indicators prepared by Investment Strategies show us that IAG, in rebound mode and slightly downwards, reaches a total score of 4 out of the 10 that can be achieved. In fact, IAG is bullish in its medium-term trend, with positive fast total momentum and long-term growing business volume.
On the downside, the long-term trend is bearish, the total slow moment is negative, the volume of business in the medium term is decreasing and the volatility of the value, in its two aspects measured in terms of its range of amplitude, is increasing in the medium and long term.