Tuesday, July 5

IAG: If you cannot close above 1.80 the danger does not disappear

IAG (Iberia) is a security that is giving a lot of play and that investors have been very aware of in recent months, says José Luis Herrera, an analyst at BiG. The news about the advance of the pandemic and the new variants have an impact on the company’s price. The imposition of travel restrictions and the cancellation of flights puts the airline holding company in check.

At a technical level, it has been moving in a broad channel, which has a support zone at levels around 1.45 euros and at the top around 2.15 euros, as can be seen in the graph.

According to the analyst, in previous sessions it seemed that he was at risk of losing an important Fibonacci level in the area of ​​1.60 euros, which seemed that it could give way to a higher fall, “but the strong accumulated oversold in the value has caused it to gain momentum from a little lower, coinciding with that channel base, at 1.45 euros”.

That would now be the support zone that, if lost, could suppose a setback to the area of ​​1.20 euros.

As for the area of ​​highs in recent days, at 1.70 – 1.75 euros, it coincides with what at the time was a bearish gap left on November 26. Now he is going to close that level and “we could give him a little more margin, up to 1.80 euros”. As long as it does not exceed that level of 1.80 euros at the close, “the danger in the very short term would not have disappeared,” says the analyst.

Check IAG technical indicators by clicking here.


Leave a Reply

Your email address will not be published.