IAG has been basing above the 21-month falling trendline support (former resistance from 02 Dec 2009/12 May 2010/09 Nov 2010 highs) and the 13-month rising trendline support (from 27 Jul/17 Nov/01 Dec 2010 lows) since forming the double top at 23.38 (24 Mar/06 Apr 2011 YTD highs). The recent advance off the 18.20 low (11 Aug) extended to reach 21.81 (02 Sept) near the 5-month bear trendline (from 07/08 Apr/25 Jul highs) which, if breached, would expose the 22.20 pivot high (Resistance 1). With the daily trend/momentum studies still constructive, scope remains for bulls to target 23.38 (Resistance 2). Clearance above would initiate the next upleg towards the equality target at 25.00 (projected 16.06/23.38 from 17.69, Resistance 3). However, a break below 19.26 (Support 1) would indicate continuation of the 5-month base and reopen 18.20 (Support 2), then 17.69 (Support 3) near the 13-month rising trendline support where bulls may reassert.
Trading Indication:
Short-term (Intraday):
Buy at 20.30 or lower;
Target at 22.20 and higher; Stop Loss at 20.00< (1.50%)
Long-term: Possibly buy lower at 18.20
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