IAG has more than doubled its share price in the last 18 months, and up until May this year it was trending very strongly. Since peaking in May, the share price has come off a bit but not in a way that suggests a larger sell-off is around the corner. After easing back over May – June, the share price attempted to go to a new high before failing. You would assume this is negative, but in IAG’s case it is not. The share price didn’t get punished for failing to go to a new high. Instead, it has managed to congest under the high, making a few more attempts at pushing through. This means that there is a good chance of it breaking to the upside, and if it does, we could see a very impulsive move develop. On the back of today’s AGM, it appears as though this breakout is now starting to occur. We anticipate an eventual rally in the order of 80c, which would see it retesting its pre-GFC high. We are more bullish on QBE fundamentally so unless you are purely trading IAG from a technical point of view, you may consider using an eventual rally as an opportunity to take profits and switch to QBE.