Looking at the technical picture of the International Consolidated Airlines Group SA stock (BME: IAG) on our 4-hour chart, we can see that the share price is forming higher lows, after reversing north in the beginning of March. At the same time, the stock is trading above a short-term upside support line drawn from the low of March 15th. That said, in order to get a bit more comfortable with higher areas, we would prefer to wait for aa push above the 200 EMA and the 1.778 barrier first. Hence our cautiously bullish approach for now.
If, eventually, that breakout happens and the price jumps above the 200 EMA and the 1.778 barrier, marked by the high of March 29th, that will confirm a forthcoming higher high, possibly inviting more buyers into the game. IAG may then travel to the next resistance area between the 1.851 and 1.881 levels, marked by the highest point of March and the low of February 23rd respectively. If that area fails to stop the upmove, the next target could be at 1.991, marked by the high of February 23rd.
The RSI is currently pointing higher, while sitting above 50. The MACD is flat, as it continues to run slightly below the signal line, but above zero. The RSI seems to support the upside scenario, as it shows positive price momentum, whereas the MACD is somewhat neutral, supporting our idea of waiting for a breakout above the 1.778 barrier.
Alternatively, if the stock breaks below the aforementioned upside line and also falls below the 1.650 hurdle, marked by the current lowest point of April, that may scare off some buyers from the arena. IAG might drift to the 1.571 obstacle, or even all the way to the 1.505 level. That level marks the low of March 9th.
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