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'Pull back' of IAG to take a downward run?



There is no doubt that things are getting significantly more complicated in recent sessions, with new doubts in the tourism sector about possible new restrictions due to the Delta variant. In fact, just at the end of June, many companies in this sector have drilled important supports, with IAG and Meliá Hotels leading the falls. Also the two values ​​have exactly the same graph, the same pattern.

That being said, what we have right now is a manual 'pull back' to the base of the old symmetrical triangle it was drilled downward. A move towards new resistance, formerly support. However, we have significant support in the 1.95-2 euro area: the 'crest' of the previous bullish momentum. Then depending on how we see the glass we can opt for one or the other scenario. Or that of an acceleration of the falls after a 'pull back' of the book to the old triangle. Or the one of open longs in corrections with a 'stop loss' below the support of 1.95 euros.

IAG daily chart since May 2020



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