The IAG share price is in a tight range as investors focus on the spreading Delta variant and the company’s plans to abandon Gatwick Airport. The shares ended the week at 198p, where it has been in the past few weeks.
What happened: The IAG stock will be in the spotlight today as the Delta variant continued spreading in Europe. The variant now accounts for more than 90% of all infections in countries like Portugal. More clusters of the virus has appeared in countries like Germany, Spain, and Italy. As such, there are concerns that the illness will keep rising and push more countries to add restrictions to stem the spread. This could have an impact on the upcoming Summer traveling season.
The IAG share price will also react to news that the company’s British Airways is considering abandoning Gatwick Airport, the country’s second-biggest airport. The bosses are considering increasing their focus on Heathrow Airport. The review follows an order from IAG, which is concerned that it might lose its slots at Heathrow.
The four-hour chart shows that the IAG share price has been in a consolidation phase in the past few weeks. As a result, the stock has formed a symmetrical triangle pattern that is shown in blue. The stock is also at the same level as the 25-day and 15-day moving average while the MACD is hovering near the middle line.
Therefore, with the triangle pattern nearing its confluence zone, we might see the shares stage a breakout in either direction. If this happens, the next key levels to watch will be the support and resistance levels at 190p and 220p.
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