American Airlines Group Inc. is an American publicly traded airline holding company headquartered in Fort Worth, Texas. It was formed on December 9, 2013, from the merger of AMR Corporation, the parent company of American Airlines, and US Airways Group, the parent company of US Airways.
#AAL after strong bearish moves since early June 2021 that led it to break the strong support, the stock consolidated between $ 20.50 and $ 18.50.
We believe that this consolidation will soon be broken upwards, with a good chance of bringing AAL back to previous levels.
The stock recently broke the bearish channel, attempting several times to break out of the 50MA
AAL tested the support at $ 18.50 and formed a positive divergence with the RSI
RSI, in addition to the positive divergence, has exceeded the level of 50 increasing the probability of a rise in the short term.
MACD, in continuous growth since the beginning of June 2021, is in positive divergence with the price. The indicator is also reaching the area of 0: if it is exceeded, it would confirm the bullish moment.
To conclude, we believe that the recent moves coupled with the positive divergence with the MACD and RSI indicators may lead AAL to retest previous levels.
A break and close above $ 21.00 would be a further confirmation of the change of direction in the short term.
Entry range $ 20.00 - 21.00
Target 1 $ 23.00
Target $ 25.00
Stop loss $ 18.00
OTB Global Investments
21 September 2021