$AAL #USA #NASDAQ #AmericanAirlines #Stock
Ready to Tumble
American Airlines (NASDAQ: AAL) has been targeted by speculators several times now. AAL made headlines when it soared an inexplicable 41% in a single day back in early June. The stock went even higher the following trading session, and has tumbled ever since.
Along the way, it’s set several lower lows while lingering under the 10-day moving average. In fact, despite crossing above it several times, AAL never managed to close above the 10-SMA since June 15th.
Now, AAL has fallen below its minor bullish trend (represented by the trendline in yellow) and key support at $12.00.
Should AAL trade below today’s low, it might make sense to take the stock short with a trade trigger of $11.85.
The market certainly seems ready to finally “tip over.” If it does, AAL’s going down.
American Airlines Group Inc. is a holding company.
The Company’s primary business activity is the operation of a network air carrier, providing scheduled air transportation for passengers and cargo.
The Company operates through American segment, which provides air transportation for passengers and cargo.
The Company’s cargo division provides a range of freight and mail services with facilities and interline connections available across the globe.
Together with its regional airline subsidiaries and third-party regional carriers operating as American Eagle, its airline operated an average of nearly 6,700 flights per day to nearly 350 destinations in more than 50 countries, principally from its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, District of Columbia, as of December 31, 2016.
In the fiscal year ended December 31, 2016, approximately 199 million passengers boarded its mainline and regional flights.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 15.35.
The projected lower bound is: 8.50.
The projected closing price is: 11.93.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 6 black candles for a net of 3 black candles. During the past 50 bars, there have been 25 white candles and 24 black candles for a net of 1 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 21.9236. This is not an overbought or oversold reading. The last signal was a buy 0 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 43.17. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 21 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -118.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 8 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 15 period(s) ago.
Rex Takasugi – TD Profile
AMERICN ARLNS GP closed up 0.760 at 11.940. Volume was 1% above average (neutral) and Bollinger Bands were 18% narrower than normal.
Open High Low Close Volume 11.000 11.950 10.980 11.940 90,450,832
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bearish
Moving Averages: 10-period 50-period 200-period Close: 12.39 12.60 20.98 Volatility: 95 156 125 Volume: 90,650,056 103,751,184 45,512,320
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
AMERICN ARLNS GP is currently 43.1% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
Our volume indicators reflect moderate flows of volume out of AAL.O (mildly bearish). Our trend forecasting oscillators are currently bearish on AAL.O and have had this outlook for the last 7 periods.
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