Potential outside week and bullish potential for IAG

Aug 17

Entry conditions:
(i) higher share price for IAG above the level of the potential outside week noted on 15th August (i.e.: above the level of $8.86).

Stop loss for the trade would be:
(i) below the low of the outside week on 11th August (i.e.: below $8.18), should the trade activate.

Aug 24

Trade active

UPDATE (week ending 22-Aug): Trade activated on Monday 18th August, activating the outside week and collecting a decent dividend payout of $0.19 per share on Thursday 21st August whilst testing the previous resistance area of $9.10 from 25th June and closing between the 10 and 30 day MA's at the end of the trading week.

Aug 30

Note

UPDATE (week ending 29-Aug): The initial downwards slide from the dividend payment continued through to about mid-week where the trade encountered and successfully tested the support level from 22nd November 2024 ($8.29; highlighted in the chart above) before closing the end of the week between the 10 and 30 day MA's at $8.71. This 'dip' should be considered a 'first strike' and a warning sign though, since this could now be forming a lower high on the daily chart - as such, the daily chart is suggesting that conservative and aggressive traders/investors alike consider raising protective stops (at the very least) to an area beneath the recent swing low of $8.32 formed on 26th August.

Sep 6

Note

UPDATE (week ending 05-Sep): A fairly stable week of share price action for IAG compared to the prior week, the share price closed above both 10 and 30 day MA's at the end of the trading week. Protective stops are suggested by the daily chart to be maintained beneath the recent swing low of $8.32 (from last week), however the daily chart suggests to raise protective stops to beneath the newly formed swing low of $8.48 from 4th September should a new high above $8.80 be formed on the daily chart.

Sep 13

Note

UPDATE (week ending 12-Sep): A lower low formed on the daily chart, but not enough to trigger the recent swing low suggested in last week's update. This sluggish action reinforces the chart's suggestion from last week with respect to risk management.

Sep 20

Trade closed: stop reached

UPDATE (week ending 19-Sep): Trickle, trickle, trickle... the sluggish price action couldn't find a bid throughout the week and then at the end of the week, the raised protective stop was triggered. The charts are suggesting to save yourself further pain if you're in this trade - why expose yourself to any further death by 1,000 paper cuts?