AAL approaching 4 year downtrend
Trendline is pretty strong on both sides (Support and resistance)...
think of all the negative news in the last 4yr for airliners and this trend has never been broken. One will give way later this year , probably 3 Qt. With two bottoms forming on this monthly I think AAL might soar after retesting 11-12 one more time.
What brought me to AAL was the squeeze this stock underwent last week. Once AAL closed above its daily 200sma for the first time in a yr
and the bears got squeezed.
1.Overbought on every daily indicator
2. Approaching 4yr trendline around 17.40
I'm looking for a pullback to close gap at 15.38
If it drops below 15.30 chances it retest that 200sma at 14.70 is high.
If it drops back below 200sma then we're are headed for 12$
AAL like most airliners move in tandem with DJT ( Dow jones transport)... I posted a chart on it, check it out!.
It's been a while since I've traded airliners with exception of Boeing. I'll be looking to short AAL for the gap close this week..
I'm thinking 15.50 P
1/27
Stop loss 17.50
think of all the negative news in the last 4yr for airliners and this trend has never been broken. One will give way later this year , probably 3 Qt. With two bottoms forming on this monthly I think AAL might soar after retesting 11-12 one more time.
What brought me to AAL was the squeeze this stock underwent last week. Once AAL closed above its daily 200sma for the first time in a yr
and the bears got squeezed.
1.Overbought on every daily indicator
2. Approaching 4yr trendline around 17.40
I'm looking for a pullback to close gap at 15.38
If it drops below 15.30 chances it retest that 200sma at 14.70 is high.
If it drops back below 200sma then we're are headed for 12$
AAL like most airliners move in tandem with DJT ( Dow jones transport)... I posted a chart on it, check it out!.
It's been a while since I've traded airliners with exception of Boeing. I'll be looking to short AAL for the gap close this week..
I'm thinking 15.50 P
1/27
Stop loss 17.50
