Are IG Group Shares (LON: IGG) Threatening Break Out?

IG Group shares (LON: IGG) have drawn attention in recent months, as gains of 28.84% on a YTD basis significantly outperforms the FTSE 250 index's 9% gain over the same period. The company that operates in the financial trading market and is known for offering spread betting and contracts for difference (CFD), amongst others.

Alongside the solid gains in IG's share price, the dividend yield of almost 5% is also turning heads with income seekers. Taking a look at price action, IGG is trading up near 52 week highs, and threatening to pull away from what had been previous resistance near the 950p level. Viewing the 10y chart below on weekly candles, it becomes easier to identify the move, but the re-test if it occurs could be important to the longer term trajectory,

IG Group appears to be attracting attention from investors who appreciate both growth and income, helping support price action. With a market capitalization of £3.57 billion and a forecasted yield narrowly edging out that of some of the most popular UK listed dividend stocks, IG Group emerges as a compelling choice, particularly for those who value a healthy dividend income stream.

The allure of IG Group extends beyond its solid performance metrics. This is a company that thrives amidst market volatility—an attribute that's particularly noteworthy given the uncertainties like the upcoming US presidential election and the ongoing US-China trade tensions. These events can introduce significant turmoil into global financial markets, conditions under which IG Group’s services tend to see heightened demand.

IG's shares have emerged as an enticing alternative to other popular dividend names on the London Stock Exchange, especially in an environment characterized by economic headwinds and market volatility. You will always need to conduct your own due diligence, and taking an element of both fundamentals and technicals into account is a sensible place to start.