Bay Capital Share News (BAY)

British Airways this morning reported a pre-tax loss of £148m on the last three months, after a significant drop off in travellers as people stayed at home because of the recession. A 12.2% fall in revenues highlights the extent of the difficulties faced.However, given the extent of the problems over the last few months, the share price has managed to stabilise since posting a low last October of 105.40p.As if to reinforce this the shares rose Friday morning on the fact that the losses weren't as bad as expected. The situation with respect to the share price is nowhere near as bad as March 2003, when it hit a low of 85p, and the charts do indicate that there does appear to be an area of support building up underneath the share price. The shallow trend line from the lows at 105.40p can be extended back to touch the 2003 lows of 85p, and as such there does appear to be an area of support which currently sits around the 118p area. The share price does need to break above its reaction highs of around 175p in the near term to stabilise the downside pressure. For now the share price appears to be trading in a broad sideways range that is slowly contracting. For periodic TA updates follow me on TwitterAlso read my Investors Guide to Technical Analysis and Level 2