Technical Pulse: American Airlines Group Inc January 9, 2020 523

 

The bullish sentiment for American Airlines (US: AAL) will continue and possibly have a short-term rally beyond 30.00 based on the technicals indicated.

  1. The stock has formed an ascending channel after a strong bearish downfall in August 2019.
  2. Bullish engulfing candle above 88.6% of the Fibonacci retracement level indicates a strong bullish sentiment forward.
  3. Potential double bottom.
  4. Based on the Fibonacci extension level of 26.66-29.81, the target price for the upside moves at 127.2% confluent strongly with the potential selling zone.

*Timeline of the technical call for AAL is between 1-2 weeks.

*Should price break below the support level of 26.66 by 3 periods, the whole ascending channel will be invalidated and there is a strong possibility of a downside move as the ascending triangle will be the bearish flag formation.

 

CHART LEGENDS

Stochastic Oscillator

Red line = Overbought Line

Green line = Oversold Line

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