The IAG share price has been on a strong bull run for the last two weeks. The stock has been among the best-performing stocks in the FTSE 100 index. The stock’s price has jumped it more than 34% in the past two weeks. It has also jumped more than 28% this year and 17% since the start of September. The company has a total market capitalization of £9.13 billion.
Relief at last
The air travel sector has been among the worst-hit sectors by the coronavirus pandemic. However, the sector is seen to have made substantial progress in the past few months. The UK airlines have been rallying for the past week after the United States announced that it would ease travel restrictions on the UK and EU countries from November.
In the announcement last week, the United States stated that only fully vaccinated passengers will be allowed to travel. This could boost the number of passengers as travel demand soars. The IAG share price could also skyrocket.
IAG is the parent company of British Airways, Aer Lingus, and Iberia. The company gets most of its revenues from selling tickets on transatlantic routes between America and Europe.
In an interview, IAG CEO, Luis Gallego stated that the company is not planning to do a rights issue. Currently, the company has €10.3 billion in liquidity. Therefore, investors seem optimistic about the company’s price outlook.
IAG Share Price Analysis
The daily chart shows that the IAG share price has been on a strong rebound for the past few weeks following the US announcement.
It has managed to move above the 25-day and 50-day exponential moving averages. Its Relative Strength Index (RSI) has moved higher. However, at 66 its RSI is closer to the overbought region, which could prompt an imminent sell-off period.
Therefore, I expect the IAG stock price to continue its bullish run as the travel restrictions continue easing. The next target will be the key resistance at 200p.