IAG share price returned to the upside on Tuesday, gaining 1.1% and trading at GBX 340 at the time of writing. The stock has had a strong run in the last month, recording gains of 8.1%. That mirrors the performance of crude oil prices, which have declined by 7.7% in the same time frame.
The airline group’s shares are up by 13.3% year-to-date, and the positive sentiment surrounding air travel industry is likely to help keep it on the ascending trajectory. Commencement of talks between the United States and Russia could bring to an end the Russia-Ukraine war and boost IAG’s revenue stream.
The war put downward pressure on IAG’s revenues as it disrupted many flights across the Europe-Asia routes. Also, the calming of tension in the war could cut off geopolitical risk premium on oil prices, adding propulsion to IAG share price.
Meanwhile, IAG (LSE: IAG) will announce its quarterly earnings on February 28th, setting the stage for increased volatility in the coming days. Also, many institutional analysts still maintain a strong view of IAG share price performance in 2025. However, Bernstein recently downgraded its rating of the stock from “outperform” to “hold”, with a price target of £3.50. Nonetheless, that still infers a 2.8% upside for the stock from the current price.
The momentum on IAG share price favours the continuation of the upside above the pivot mark at GBX 339. The stock will likely meet the first resistance at GBX 344. However, a stronger momentum will break above that level and potentially test the second hurdle at GBX 350.
Conversely, breaking below GBX 339 will shift the momentum to the downside. In that case, the first support could come at GBX 339. The upside narrative will be invalid if the price breaks below that level. In addition, that could result in a stronger momentum to test the second support at GBX 330.
This post was last modified on Feb 18, 2025, 12:19 GMT 12:19