With BA pilots currently on strike, our chartist looks at the share price ramifications.
British Airways (LSE:IAG)
With thousands of British Airways (LSE:IAG) pilots getting bolshy over salaries, one can only speculate how many will manage to find themselves "stranded" in exotic destinations as they suffer a couple of days aggressive strike action. At least we shall no longer be bothered by impoverished pilots, passing their cap down the cabin of short haul jets in the hope of getting a tip...
Or was that Burundi Airways?
The big question is, shall the company share price suffer?
We're not entirely sure. For some time, the share has calculated with 390p as a drop target but the lowest achieved has been 410p, making us wonder if some real strength is evident.
After all, if a drop fails to make a computed target, the implication is of something other than weakness.
Near-term, the share price needs only to exceed 441p as this apparently should provoke some price recovery to an initial (useless) 454p.
Importantly, should 454p be exceeded, the first box to suggest "bottom" gets ticked, allowing some firmer climbs to 486p.
Unusually, above 486p already permits us to calculate a third level target of 516p, along with the visual suggestion that the price has regained the uptrend since 2012.
We're not entirely convinced.
It feels more likely we should expect weakness below 410p to provoke a bounce from 390p. There is a great danger, if such a level breaks, as secondary calculates down at 317p and a point where it almost "must" rebound.
Only with closure below 317p will this share become an extremely dangerous idea, thanks to "ultimate" bottom, the point we cannot fathom below, being at 99p.
Source: Trends and Targets Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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