Equities markets are on a recovery path after the United States started negotiations with Canada and Mexico on Monday. The three countries had been involved in tariff wars that risked polluting the wider global economy. However, China has retaliated with counter-tariffs against an assortment of US goods following the former’s move to impose 10% trade tariffs. Nonetheless, I expect IAG, EasyJet and Tesla stock prices to rise.
International Consolidated Airline Group (IAG) stock price has risen by 7.1% in the last five trading sessions and is up by more than 15% year-to-date. That has been supported by a positive passenger number growth in the US and Europe, declining geopolitical risks and lower crude oil prices.
Crude oil prices have declined by 1.8% in the last month, and are at -1.7% in the last five trading sessions. Also, IAG (LSE: IAG) is on a five-session winning streak, which has resulted in a bullish sentiment. Furthermore, many analysts have recently revised upwards their targets for IAG share price.
Pivot: IAG share price pivots at GBX 343. The upside will prevail if action stays above that level. A slide below it will favour the sellers to take control.
Resistance: The first resistance is likely to be at GBX 348. Breaking above that barrier could test GBX 352.
Support: The first support at GBX 341, below which the stock could test GBX 338.
Like IAG stock, EasyJet share price is looking up due to the downward trajectory by oil prices and upward trajectory of passenger figures. In addition, EasyJet’s status as a budget airline is strengthened by increasing wages in the Eurozone, which is likely to encourage travel.
The stock trades above the Volume Weighted Moving Average (VWMA), which is at GBX 499 on the daily chart. Action above the GBX 500 psychological mark is likely to continue favouring the stock’s upside momentum.
Pivot: EasyJet stock price pivots at GBX 502.
Resistance: The first resistance is likely to be at GBX 513, beyond which the next barrier could come at GBX 522.
Support: The first support could come at GBX 494, and the second one at GBX 486.
Tesla stock price has been readjusting back to reality after the sentiment-fuelled frenzy drove it to record highs following Donald Trump’s election win. Tesla (NASDAQ: TSLA) has dropped by about 14% from its peak level of $430 and has recently been under pressure following Trump’s imposition of tariffs against China, Canada and Mexico.
However, the suspension of the tariffs and counter-tariffs among the US, Canada and Mexico has revamped investor sentiment around the stock. Also, CEO Elon Musk’s announcement that Tesla’s robotaxis will start test runs in Austin, Texas from June 2025. That has added propulsion to the Tesla stock price outlook, despite missing earnings forecasts in the quarter ending December 2024.
Tesla stock price pivots at $379. Action above that level will favour the buyers to be in control. Otherwise, the momentum will shift to the downside.
Resistance: Primary resistance at $391. The second hurdle is likely to be at $400.
Support: The first support is likely to be at $370. Breaking below that level will invalidate the upside narrative. The momentum could clear the path to test $359.
This post was last modified on Feb 04, 2025, 16:41 GMT 16:41