American Airlines | AAL | Long at $14.00
Updated
Similar to my cruise line picks, I anticipate airlines to quite literally "take off" in the coming years as interest rates are lowered and people travel more. These two industries never quite recovered from the pandemic, but their time to do so is "likely" fast approaching.
American Airlines
AAL has been consolidating near my selected long-term simple moving average (SMA) for several years. Many retail investors have been beaten up by the sudden up and (especially) down price movements, but this is where larger investors gather their shares. The fact AAL did not make a new low in August 2024 is a hopeful sign from a technical analysis perspective. While the price may dip to close out the new lower price gaps, I think we are nearing the "take off" zone which will be a massive break through the long-term SMA. A confirmation that something bigger is brewing would be a price move into the 15s, dip down to the 12s, and the larger move up. Regardless of trying to predict bottoms, AAL is in a personal buy zone at $14.00.
Target #1 = $15.25
Target #2 = $16.55
Target #3 = $18.40
Target #4 = $27.00 (very long-term outlook...)
American Airlines
AAL has been consolidating near my selected long-term simple moving average (SMA) for several years. Many retail investors have been beaten up by the sudden up and (especially) down price movements, but this is where larger investors gather their shares. The fact AAL did not make a new low in August 2024 is a hopeful sign from a technical analysis perspective. While the price may dip to close out the new lower price gaps, I think we are nearing the "take off" zone which will be a massive break through the long-term SMA. A confirmation that something bigger is brewing would be a price move into the 15s, dip down to the 12s, and the larger move up. Regardless of trying to predict bottoms, AAL is in a personal buy zone at $14.00.Target #1 = $15.25
Target #2 = $16.55
Target #3 = $18.40
Target #4 = $27.00 (very long-term outlook...)
Trade active
Targets #1 and #2 reached for a 18.2% gain.Note
Target #3 reached for a 31.4% gain.Trade closed: target reached
Closed position today at $18.50 after major price gaps on the daily chart were closed (except the one in between $26-$27). Still very bullish (not an easy choice). But RSI is getting stretched and hoping for a pullback opportunity back to my historical SMA after earnings or another event. Gain = 32.14%.
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