Wednesday, October 5

IAG: is it time for value to take off at the beginning of the year?

The evolution of the omicron variant is certainly exponential throughout Europe. Despite the restrictions and especially due to the effect of the meetings on these Christmas days, the tip of the iceberg of infections is expected to occur in the specific case of Spain in the coming days, something that has affected not only the population in general but also to airline workers who have been impacted in this new wave of the pandemic.

However, the truth is that IAG (Iberia) seems to want to recover from those lows marked on November 26, in which the market was clearly impacted by hurricane omicron. The value recovers already 20% although analysts consider that the stock must recover lost levels above the level above the 1.80 euros per share lost, to convince investors. Yesterday it touched them intraday, but they indicate that it should be established above them

At the moment in this year in which volatility will undoubtedly mark, at least the first stock market movements of 2022 IAG recovers 16% in the last twenty trading sessions to face the exercise that has just begun with better tone. At the moment from London stands out British Airways’ idea of ​​retaking from Gatwick airport in March short haul flights to increase in the months to come and that they had not recovered since the start of the pandemic.

IAG annual share price

While it seems that the operation with Air Europa will continue to be negotiated until January 31, although everyone agrees that there will have to be a drastic change in the conditions for it to close, something for which the market is not betting at the moment.

What’s more, They have just released from Iberia strong offers for national and international destinations from 20 euros and in the case of cross-border for just over 100 euros, to promote, as is traditional in the airline, winter travel. It seems that the sector is relieved with a less serious omicron variant and the progressive lifting of restrictions in the countries.

For José Antonio González, technical analyst of Investment Strategies IAG “reaches the horizontal support zone that we project from 1.505 / 1.47 euros per share, as well as the lower band for contracting a medium-term decreasing channeling process. Simultaneously, the MACD oscillator accumulates large oversold readings, which require a normalization process, which would have as the first objective to overcome the closing of the gap by 1.8375 euros per share ”.

IAG on daily chart with Average amplitude range in percentage, MACD oscillator and trading volume

IAG technical value analysis

Just 1 point out of 10 possible This is what IAG obtains, which in bearish mode and according to the premium technical indicators prepared by Investment Strategies, only maintains the long-term business volume positive, which is increasing for the value.

On the downside highlights the downward trend in its two aspects, medium and long term for IAG, the total moment, slow and fast, is negative, the volume of business in the medium term is decreasing and also the range of amplitude, in the medium and long term, the volatility presented by the value is increasing.

For Diego Morín, IG analyst IAG “is going to be at the mercy of all the news that appears about the variants of the coronavirus. It is at an important point, such as 1.70 euros per share, looking above all for the closing of this bearish gap around 1.80 ”.

The IG expert highlights that “it must also be seen that the omicron variant is less shocking than the delta and augurs a respite for the airlines. For now, as long as it remains above the 1.50-1.60 area, the next short-term objectives it has would firstly be to close that gap towards 1.80 and from there to see if the market has the strength to go back to conquer the 1.90 zone and especially that of 2 euros per title ”.

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