Sunday, October 2

IAG: Confirmation of uptrend reversal pattern

The price of IAG manages to confirm the pattern of accumulation or change in trend in favor of purchases in the form of double bottoms (S1 S2), whose base is established at the height of (1) the lower band of contracting of a wide decreasing channel in the medium term , around 1,438 euros per share, (2) supported by positive divergences in momentum oscillators such as Stochastic, and whose confirmation is achieved with the break to the upside of 1.7175 euros per share.

The subsequent recovery is being forceful, managing to revalue more than 19% in a few sessions, a movement that generates readings of bullish excesses or accumulated overbought in oscillators, so it would not be strange to attend some type of short-term consolidation process that, At the moment, it does not alter the projected upward target of the double bottom, located in the vicinity of 1.9520 euros per share, an objective that does not alter its background or medium-term scenario, as it is situated within the process of decreasing medium-term channeling .

IAG on daily chart with Trading Activity (window with a blue background), Stochastic oscillator (window with a green background) and Medium Amplitude Range (window with a yellow background)

IAG on daily chart with Trading Zone analysis template

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