International Airlines Group (IAG) is one of the world’s largest airline groups, with a fleet of 533 aircraft. Before the impact of the COVID-19 pandemic it operated to 279 destinations and carried around 118 million passengers each year. It is a Spanish registered company with shares traded on the London Stock Exchange and Spanish Stock Exchanges.

It is also a constituent of the FTSE 100 Index and IBEX 35 Index.

Some people may find the name unfamiliar but it is the holding company for British Airways.

There has been a surge in the delta variant of the covid virus in Britain lately. Currently the British government is rushing to speed up the last leg of its immunization program for people aged 18 and over.

Statistic is positive though, showing that two doses of the Pfizer-BioNTech or the Oxford-AstraZeneca Covid-19 vaccines are highly effective against hospitalization from the delta variant.

To date, almost 60% of all U.K. adults have received two doses of the vaccine.

Some countries are banning flights from Britain as a result of this latest development. One latest country to do that is Hong Kong.

However, Prime Minister Boris Johnson said the country is ‘very likely’ to be freed from restrictions on July 19. The UK reported 22,868 new Covid-19 cases on Monday, the most since January 30. But hospitalisation and death rates remain relatively low as the vaccine programme progresses.

More than 84 per cent of UK adults have had at least one dose and nearly 62 per cent of adults have had two. Vaccines have so far prevented an estimated 7.2 million infections and 27,000 deaths in England, according to modelling from Public Health England and Cambridge University.

Too much bad news is been priced into IAG at the moment of time.

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IAG Daily Chart

RSI is currently in the oversold territory and this was breached only 3 times since the onset of the pandemic. The price is at the lower support level of the descending channel.

Technical bounce should be imminent at this level which is also close to the 200 days MA.

Risk reward looks enticing. Currently price is at GBp170 thereabout. First level resistance about GBp183, and over a longer period, price target is at the top end of the descending channel which is around GBp202.

Please read disclaimer and again, the above is for informational purposes only and should not be taken as a solicitation to buy securities. Do consult your financial advisor as i do not know your investment risk profile and your investment objectives and time horizon.