Swing Trade Idea AAL (1Month Horizon, 25%)
TA: RSI, MACD in the Weekly chart shows that sellers are covering their positions. 4H Chart is also bullish.
Fundamentals: As the economy reopens and US provided financial support. Its fair to say that airlines are not going bankrupt or nationalized. Also mergers in the airline space may be on the books here in order to "save this critical US industry".
From a risk management , if AAL reaches 25% of All time high market cap we are @15 ( 50% upside) with a tight SL @9 (-10% downside) this trade is simply too good from a risk/reward perspective.
NOTE: Always do your own research before trading. This is simply my opinion of the market.
Fundamentals: As the economy reopens and US provided financial support. Its fair to say that airlines are not going bankrupt or nationalized. Also mergers in the airline space may be on the books here in order to "save this critical US industry".
From a risk management , if AAL reaches 25% of All time high market cap we are @15 ( 50% upside) with a tight SL @9 (-10% downside) this trade is simply too good from a risk/reward perspective.
NOTE: Always do your own research before trading. This is simply my opinion of the market.
Trade closed: stop reached:
SL Triggeres @9.00
Comment:
I was a little too soon!!