Trade of the Day – American Airlines Group Inc. (NASDAQ: AAL) November 1, 2023 212

Trade of the Day

American Airlines Group Inc. (NASDAQ: AAL)

(Current Price: US$11.15) – TECHNICAL BUY

Buy price: US$11.15     Stop loss: US$10.60 (-4.93%)  

Take profit 1: US$12.25 (+9.87%)     Take profit 2: US$12.75 (+14.35%)    

 

 

 

(1) & (2): American Airlines started to trade sideways in its current downtrend channel after retesting the US$11 horizontal support level, which held the price from July to October 2020

(3): This was accompanied with bullish divergence on both Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) technical indicators showing bearish momentum weakening as it made a higher low while the price made a lower low into the support

 

(4): The MACD also made a fresh bullish crossover recently

 

Should the price do a reversal from the current downtrend and break out of the downtrend channel thereafter, it could potentially retest the first resistance level at US$12.25, confluent with a prior swing low support in December last year.

 

It could then head towards the next resistance level at US$12.75 which was the prior swing low support in April this year.

Expected timeline of the trade is 2-12 weeks from the date of report issuance.

This counter is available for CFD trading and is available on POEMS US Asian Hours, Singapore’s first platform to provide trading of US Equities during Asian Market opening hours (from 9am SGT). For more information, please click here, or scan below:

 

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About the author

Profile photo of Zane Aw

Zane Aw
Technical Analyst
PSR

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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