British Airways aka IAG for 4/05/2020

#Germany #Brent The “Worlds Favourite Airline” lived up to its (once deserved) slogan, helping bring Covid-19 to the entire world. It’s difficult to avoid speculating on the future for the airline industry as many people will doubtless choose what they perceive as safer ways to travel. A snippet of news over the weekend, announcing Berkshire Hathaway (the Warren Buffet crowd) are divesting themselves of airline holdings suggests considerable nervousness regarding the long term prospects for airline share prices.

Equally, it’s doubtful the Cruise Ship industry shall experience an easy time, once the crisis starts to abate as we’ve all seen too many news clips of liners denied docking facilities due to outbreaks on board. Personally, a favourite form of long-distance travel (within Europe), adventurous rail journeys will also be avoided in the future. It shall be quite a while before the close proximity of people shall be entertained.

Are we to re-enter the Golden Age of Motoring, along with a sudden upswing in demand for Petrol & Diesel due to electric vehicles’ inability to cover long distances without equally long recharge times?

 

There can be little doubt everything has changed, unless a successful Covid-19 vaccine appears.

 

Regarding International Consolidated Airlines Group, owners of British Airways, the future looks a bit dodgy in the event Berkshire Hathaway proves correct. It’s worth remembering sometimes Mr Buffet gets things horribly wrong. If anyone remembers his foray into Tesco with an investment, perfectly timed at the wrong moment, Berkshire Hathaway can sometimes experience a bit of an “oops” moment. However… perhaps they read our article on British Airways last month (link here) or even our earlier one last September (link here)

 

For British Airways (not typing the full company name again) share price, the future looks more threatening than one of their short-haul breakfasts. Movement next below 192p looks very capable of an initial 139p with secondary, if broken, calculating at a hard landing of 98p. We cannot calculate below 98p, so hopefully, this level proves capable of producing a rebound. The bigger question, of course, is what happens if 98p does indeed make an appearance?

Since 1990, the share price has kept returning to around this level, suggesting a glass floor exists. As we cannot calculate below 98p, there is certainly hope for a rebound but we’d question whether the share shall yet again explore the heights above 600p. If our thoughts regarding “travel caution” prove correct, the best we would hope would be the price to oscillate between the 98p level and the Red uptrend.

 

Presently trading around 215p, we shall not be inclined to take any rise seriously unless some sort of miracle takes IAG above 297p. At present, this would be a sensible early indication of bottom being “in”. Who knows, perhaps they shall change the company name to something easier to write!

Hey, chart goes here

FUTURES

Time Issued Market Price At Issue Short Entry Fast Exit Slow Exit Stop Long Entry Fast Exit Slow Exit Stop Prior
4:59:17PM BRENT 26.67 25.26 24.855 23.84 26.96 28.1 30.99 33.09 25.7
5:01:38PM GOLD 1702.02 ‘cess
5:04:58PM FTSE 5746.07 ‘cess
5:07:01PM FRANCE 4544.2
5:11:45PM GERMANY 10771.68 10742 10657 10569 10860 10950 10987.5 11070 10830
5:29:50PM US500 2827 Success
5:33:15PM DOW 23703 Success
5:34:53PM NASDAQ 8718 Success
5:36:28PM JAPAN 19472 Success

 

 

1/05/2020 FTSE Closed at 5763 points. Change of -2.34%. Total value traded through LSE was: £ 3,551,403,027 a change of -92.77%
30/04/2020 FTSE Closed at 5901 points. Change of -3.5%. Total value traded through LSE was: £ 49,092,686,584 a change of 648.68%
29/04/2020 FTSE Closed at 6115 points. Change of 2.64%. Total value traded through LSE was: £ 6,557,213,009 a change of 3.88%
28/04/2020 FTSE Closed at 5958 points. Change of 1.92%. Total value traded through LSE was: £ 6,312,043,698 a change of 37.73%
27/04/2020 FTSE Closed at 5846 points. Change of 1.63%. Total value traded through LSE was: £ 4,582,926,197 a change of -2.06%
24/04/2020 FTSE Closed at 5752 points. Change of -1.27%. Total value traded through LSE was: £ 4,679,159,654 a change of -17.56%
23/04/2020 FTSE Closed at 5826 points. Change of 0.97%. Total value traded through LSE was: £ 5,675,602,564 a change of -4.08%

 

 

 

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