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The IAG share price is rising today after the British Airways owner announced that it would restart its lucrative America route. The stock jumped by more than 2%, becoming the second-best performer in the FTSE 100 after Whitbread. The EasyJet and Rolls-Royce share prices are also rising.
What happened: In a statement yesterday, British Airways said that it would restart its flights to the United States because of the strong rollout of the vaccine. The UK and US have all vaccinated 48% and 35% of their population. This is a notable announcement because British Airways generates a substantial amount of revenue and profitability from the transatlantic route. The company is also already offering flights to other European destinations.
So, what next for the IAG share price? In general, analysts are positive about IAG. Those at Bernstein have a price target of 250p, implying a 20% upside from the current level. Similarly, those at UBS, Bank of America, and Berenberg expect the shares to jump to 285p, 250p, and 230p, respectively.
The daily chart shows that the IAG stock price has been in a consolidation mode in the past few weeks. At the current price, the shares are slightly below the June high of 239p. It is also slightly above the ascending black trendline and slightly above the 25-day and 15-day exponential moving averages (EMA). It also seems to be forming an ascending triangle pattern whose top is at 222p.
Therefore, a strong move above the upper side of the triangle will be a bullish sign. It will send a signal that the shares will keep rising as bulls target the June high at 239p. However, a drop below the neckline of 170p will invalidate the bullish case.
