Hello traders and investors! It has been nearly 1 month since my last analysis about it, let’s see if AAL behaved the way it should.
First, in the 1h chart, AAL respected the key point we mentioned in my last analysis, the black line at $ 16.47 with an astonishing precision, and it hit it multiple times, without losing it. This point was a previous resistance, and it worked as a support, as we thought it would, thanks to the Principle of Polarity. And if you missed my last analysis, the link to it is below, as usual.
It triggered several pivot points, the last one at $ 18.82, and we have a little gap at the yellow area. If it gets filled this week, it could be an Exhaustion Gap, and this could create another congestion on AAL.
Right now, it is a little to buy it, as the optimal buy point was near the $ 16.47, and we are quite close to the target I mentioned last month, but since it is engaged in a bull trend, pullbacks to the 21 ema could offer some nice opportunities to buy too.
Now, let’s see the daily chart:
In the daily chart, AAL is heading to the target we mentioned in my last analysis, the $ 22.80, which is one of the previous resistances, and nothing unusual is happening here.
The volume decreased during last month’s accumulation, which is a typical trait of just an accumulation before the explosion, and the 21 ema is pointing up, evidencing the bull trend and working as a support level in the future. What’s more, the volume increased in the last 2 days, and today is finally above the 21 moving average I like to put in the volume as well.
These are good signs but be prepared for pullbacks, but they could offer an opportunity for the late buyers. Any pullback to the 21 ema in the daily cart as well could be a nice opportunity if you missed the entry point on AAL. And remember to follow me to keep in touch with my daily analyses on stocks and indices. And please, support this idea if you liked it!
Pull back is expected especially if the stock moves below 20.33. The trend gave us a chance after the Jan spike to catch it hope it will not happen again .... happy trade and wish you all the best of luck.
Nathan_Black
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@FIRAS.msc, thanks, Firas! Best of luck to you too, my friend!
ProjectSyndicate
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neat update today. upvoted. appreciate your effort!