Tuesday, November 3, 2015

American Airlines Group Inc (NASDAQ: AAL)

American Airlines Group Inc., through its subsidiaries, operates in the airline industry. As of December 31, 2014, the company operated 983 mainline jets, as well as 566 regional aircrafts through regional airline subsidiaries and third-party regional carriers. It serves 339 destinations in 54 countries. The company was formerly known as AMR Corporation and changed its name to American Airlines Group Inc. in December 2013.
Take a look at the 1-year chart of Norfolk (NASDAQ: AAL) below with my added notations:
1-year chart of Norfolk (NASDAQ: AAL)
1-year chart of Norfolk (NASDAQ: AAL)
AAL went into a 5-month decline staring in March. However, during the last 3 months of the decline, and beginning of the rally, AAL created a clear level of resistance at $44 (green), which had also been support prior. A break above that $44 level should mean higher prices for the stock, and last week AAL broke that resistance.

The Tale of the Tape: AAL broke through its key level of resistance at $44. A long trade could be entered on a pull back down to that level. However, a break back below $44 could negate the forecast for a higher move and would be an opportunity to get short the stock.

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