Hello traders and investors! Let’s analyze AAL again! In this analysis, I’ll share some exit strategies you can use on it.
Ok, as we have been saying since my first analysis, in the end of January, AAL finally hit its natural target at $ 22.80, and it is trading even above it today! My analyses on AAL were all public, and the link to them are below this post, if you are curious.
How to proceed now? Well, it is not a buy opportunity at all. Now it is time for those who bought it under $ 17 start to think about booking their profits. Since it defeated the target at $ 22.80, this could be your stop-gain, and if AAL loses this support, then you may sell it. Another key point is the previous gap, which we still don’t know its type. If it is an Exhaustion Gap, it’ll be filled quickly, today or tomorrow, indicating a sharper pullback ahead. Use it in your favor too.
Or, if you have the stomach for it, wait for a clear reversal sign, like a lower high/low to book your profits, and buy it back when it hits the 21 ema in the daily chart. Speaking of daily chart:
Another exit strategy is a trailing stop, and you may book your profits if AAL loses the previous day’s low. For instance, if tomorrow it loses the $ 24.21 (today’s low, so far), then just sell it.
Again, pullbacks are opportunities to buy when a stock is in a clear bull trend. Don’t buy now, near a top level, and if you want to buy, wait for it to get closer to the 21 ema or one of its supports again.
And if you liked this analysis, please, support it with your like! And remember to follow me to keep in touch with my daily studies.
Accumulating...expecting it to return around 22,xx and then go back up....Covid vaccines are out there and people are starting to fly again, im not in it for the short term anyway, will keep buying it.
Thanks for your analysis.
bubblyIguana11884
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I was planning to buy this morning. But it ran up too much. So I gave up on it, and bought another one JBLU instead.
Nathan_Black
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@bubblyIguana11884, I know, this one is flying a lot. Just trade carefully, as the market is not easy.
Thanks for your analysis.