When a value rises with the violence with which the block airlines are doing it, it is not easy at all trying to find those levels of resistance that can choke them.
Weekly highs in IAG They have been marked for the moment in the 1,686 euros, being the maximum of September the 1,684 euros. Which means that the price has subtracted the entirety of the last corrective leg and has returned to the origin of the last corrective stretch. That is, the price is in the full resistance zone. Above the next control zone we have it in the highs of June, coinciding with the weekly bearish gap of 2.62 euros. Furthermore, this level also coincides with a 38.2% adjustment of the entire fall from the annual and historical highs. Such has been the collapse that a rebound of 50% would imply a rebound towards the level of 3.60 euros. While below, on the side of the supports, we have the annual minimums at 0.98 euros. It is true that this is already far from current price levels but it is where it is and where it is. The market is the one who should mark the control zones for us, not the investor in any way.
And all of the above within what remains a bottom, or primary downtrend. In fact, it is in downtrends that prices rebound most strongly. Now, unlike other times, it is true that there are reasons to leave the door open to the fact that something may be beginning to change for the better in terms of the medium and long term. The volume traded in the accumulated of the week can be historical and therefore this week may end up being that first necessary step that leaves the door open for something to be beginning to change in the market. At the end of the day we always know how things start but not how they end.