IAG owns the iconic NRMA insurance brand and its shares have risen 132% since August 2011. In the big picture though, upward momentum was lost in May 2013. The stock has risen only 7% since then. 4% of that gain has come since their profit result last week. This pleased the market with a solid improvement in margins based on lower claims.

From a charting point of view, IAG shares have arrived at crunch time and are now testing trend line resistance. If investors push the stock clear of this resistance line, they may be signalling a new era of more sustained upward momentum.

However, IAG is yet to go ex its 26c dividend and the slow stochastic is up in the overbought zone.  If this trend line is rejected again by a trend peak,  it would look like an opportunity for traders to sell with a close stop leading into the ex dividend period

IAG shares Weekly CFD chart Click to Enlarge IAG shares Weekly CFD chart
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