Update on American Airlines (AAL).
After opening with a positive GAP of 5% on Monday, a week characterized by laterality. The price tried twice to break through the $ 26 wall but did so on Thursday, before returning to $ 25, closing the week at $ 24.97 per share.
The bullish phase continues even if such an important gap, then not followed by an upward continuation, can give an alarm bell for very short-term traders, because it could be a so-called “exhausting gap”, even if the volumes do not confirm this for now.
My target, as already mentioned, is $ 30.
We are in the classic situation in which many would say “sell and repent”, at least in Italy we say so! “vendi e pentiti”
In fact, a physiological pullback in the 23.66 area on the support trendline (resistance until last week) or on the 20-period exponential moving average around $ 23 is possible.
The real support that the price must not break is the one given by the uptrend line of support drawn by me (in black).
A close below that support could mean a further downside to the $ 15 area, which is where our entry price is.
Personally, barring bad news in the covid arena, I really don’t think this will happen, so my vision remains bullish.
1 target: $ 30 where I will liquidate the profits accumulated so far
2 target: the moon 🙂
Seriously, I believe that the “bullish rally” could end once normalcy will be back in tourism and air travel.
How long will that take? If the vaccines are effective with these damn variants, reasonably in 2022.
In 2018, AAL was worth $ 50 per share with a maximum of $ 55.
The company crisis began before the pandemic and if things won’t change, even in a recovery phase it is obviously not sure that the shares will reach those levels.
Nobody has a crystal ball. I will evaluate the situation month after month.
Obviously, those who participate in my group will be able to follow my operations in real-time.
I’m done for today, I wish you a happy weekend.
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𝐷𝐼𝑆𝐶𝐿𝐴𝐼𝑀𝐸𝑅: 𝐼 𝑎𝑚 𝑛𝑜𝑡 𝑎 𝑓𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙 𝑎𝑑𝑣𝑖𝑠𝑜𝑟 𝑛𝑜𝑟 𝑎 𝐶𝑃𝐴. 𝑇ℎ𝑒𝑠𝑒 𝑝𝑜𝑠𝑡𝑠, 𝑣𝑖𝑑𝑒𝑜𝑠, 𝑎𝑛𝑑 𝑎𝑛𝑦 𝑜𝑡ℎ𝑒𝑟 𝑐𝑜𝑛𝑡𝑒𝑛𝑡𝑠 𝑎𝑟𝑒 𝑓𝑜𝑟 𝑒𝑑𝑢𝑐𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝑎𝑛𝑑 𝑒𝑛𝑡𝑒𝑟𝑡𝑎𝑖𝑛𝑚𝑒𝑛𝑡 𝑝𝑢𝑟𝑝𝑜𝑠𝑒𝑠 𝑜𝑛𝑙𝑦. 𝐼𝑛𝑣𝑒𝑠𝑡𝑖𝑛𝑔 𝑜𝑓 𝑎𝑛𝑦 𝑘𝑖𝑛𝑑 𝑖𝑛𝑣𝑜𝑙𝑣𝑒𝑠 𝑟𝑖𝑠𝑘. 𝑊ℎ𝑖𝑙𝑒 𝑖𝑡 𝑖𝑠 𝑝𝑜𝑠𝑠𝑖𝑏𝑙𝑒 𝑡𝑜 𝑚𝑖𝑛𝑖𝑚𝑖𝑧𝑒 𝑟𝑖𝑠𝑘, 𝑦𝑜𝑢𝑟 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡𝑠 𝑎𝑟𝑒 𝑠𝑜𝑙𝑒𝑙𝑦 𝑦𝑜𝑢𝑟 𝑟𝑒𝑠𝑝𝑜𝑛𝑠𝑖𝑏𝑖𝑙𝑖𝑡𝑦. 𝐼𝑡 𝑖𝑠 𝑖𝑚𝑝𝑒𝑟𝑎𝑡𝑖𝑣𝑒 𝑡ℎ𝑎𝑡 𝑦𝑜𝑢 𝑐𝑜𝑛𝑑𝑢𝑐𝑡 𝑦𝑜𝑢𝑟 𝑜𝑤𝑛 𝑟𝑒𝑠𝑒𝑎𝑟𝑐ℎ. 𝐼 𝑎𝑚 𝑚𝑒𝑟𝑒𝑙𝑦 𝑠ℎ𝑎𝑟𝑖𝑛𝑔 𝑚𝑦 𝑜𝑝𝑖𝑛𝑖𝑜𝑛 𝑤𝑖𝑡ℎ 𝑛𝑜 𝑔𝑢𝑎𝑟𝑎𝑛𝑡𝑒𝑒 𝑜𝑓 𝑔𝑎𝑖𝑛𝑠 𝑜𝑟 𝑙𝑜𝑠𝑠𝑒𝑠 𝑜𝑛 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡𝑠.