IAG share price closed trading on a high on Wednesday, as it gained 2.33% to register 167.16p. The multinational airline company has had a good run from 26th October. It is on its second week on the rise, after gaining 2.86% in the current week and 4.96% in the previous week.
Earnings report and investor expectations
IAG, which also owns British Airways, is set to announce its Q3 earnings on Friday. The current share price rally could be as a result of expectations of mostly positive results. The enthusiasm is likely based on the rise in passenger numbers in the third quarter as a result of widespread covid-19 vaccinations.
However, investors should not be overly ambitious. This is especially bearing in mind that the last two months have also seen a steady rise in fuel prices. This is likely to have eaten up a significant portion of revenue. Its effects could be felt well into the fourth quarter.
Technical analysis for IAG share price
IAG share price has been on an uptrend over the past seven trading sessions, driven by rising buying momentum. During that period, the RSI has risen from 42 to the current 50. If the buyers sustain this upward momentum, then they are likely to push the price to 171.16p, where it will encounter resistance.
However, if the momentum weakens, then a reversal could occur. In that case, the first momentum is likely to be established at 163.72p, and the second one could come at 160.22. If the downward action breaches that level, then the price could head further down. In that case, the next support is likely to be at the base of the ascending channel at 152.74p.
