IAG.L closes above its opening price after recovering from early selling pressure
International Airlines Group (IAG.L) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
IAG.L ended Wednesday at 658.00 gaining £5.40 (0.83%) on high volume, slightly outperforming the FTSE 100 (0.81%). Trading up to £4.00 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, IAG.L actually lost -1.66% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (IAG.L as at Feb 13, 2019):
Wednesday's trading range has been £10.00 (1.53%), that's below the last trading month's daily average range of £13.24. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IAG.L.
After moving lower in the prior session, the share managed to close higher but below the previous day's open, forming a bullish Harami Candle.
The market managed to close back above the 200-day moving average at 653.41. Prices are trading close to the key technical resistance level at 666.00 (R1). After having been unable to move lower than 652.00 in the prior session, International Airlines found buyers again around the same price level today at 650.40.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 666.00 where further buy stops might get triggered. As prices are trading close to February's low at 643.80, downside momentum could accelerate should IAG.L mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for International Airlines. Out of 353 times, IAG.L closed higher 60.34% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.24% with an average market move of 0.88%.