AAL American Airlines - price/volume divergence post earnings on this latest run from ~$32 to ~$38 on declining volume. Near term anticipating another leg down within bearish long term channel. Targeting $28-$30 area by January.
Also of note, we saw some unusual bearish put options activity today with about 11k $39 strike December puts being traded for around 2M in premium.
Note: Informational analysis, not investment advice.
Airlines also make more money when oil prices go down, which they just dropped quite a bit. DAL (Delta Air Lines) has history of up on $0.25 drop. Set alerts for AAL news and price changes.
Triple_Barrel_Capital
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@Pokethebear, yes oil is one of their largest costs and has a big impact to the bottom line. But it has no effect on top line results or the fact that AAL is one of the more poorly rated domestic airlines vs companies like DAL/LUV/JBLU. The chart tells the story - it's looked bearish all year and will continue to look bearish unless it can breakthrough the 200d and head back toward $50+. We'll see if cheap oil can save this stock long term, but I'm not betting on it anytime soon.