IAG shares managed to close last week above 2 euros. This It hasn’t happened since last November. and he did it in style with a significant volume of contracting.
But without a doubt, the most important thing of all was happening: it broke the downward trend line that began in March of last year. In fact, the lows of last Friday were supported by this trend line that today is passing through 2.02 euros.
This left a nice bullish scenario in case a reaction was seen today that ended with a throw back process with closings above 2.14 euros, but as we can see in the following chart, today’s bearish opening gap with an additional loss of the long-term moving average remains to be seen.
a priori that false breakout of the downtrend line It leaves us with a very bleak picture. However, the really important thing to look at is below current prices.
The price of IAG shares has been rising since they hit a low of 1.46 euros on December 20.
Since then, the value has been rising in two impulses where the first one has been very important and after a correction, the value returned to have a second impulse that effectively seems to have aborted with the bearish gap of today’s session.
However, it is precisely this correction after the first impulse that leaves us with the two points necessary to be able to draw a uptrend inside the main bearish.
This short-term bullish trend, not drawn on the chart, now passes through the 1.93 euros. They have already been tested in today’s session and so far they have held up, so this is really the level to watch today.
Therefore and conclusion, as long as we do not see a close below those 1.93 euros, there is still the possibility of retesting the 2 euro area.
However, the market is very nervous about the situation being experienced in Ukraine and any negative news in this regard will cause us to end up losing today’s lows and with them a test of the next support at 1.80 euros.