Is American Finally Cleared for Takeoff?American Airlines has struggled for years. Could it now regain lost altitude?
The first pattern on today’s chart is the falling trend line along the highs of May, August and September. The carrier pushed through that resistance last week and has now bounced at it. Has the line become support?
Next is the recent low around $12. This closely matches the 78.6 percent Fibonacci retracement level of the entire rally between March 2020 and May 2021. (For the sake of visual simplicity, the other retracement lines are not shown.)
Including the low in June, AAL has also formed a double bottom around the same price level. That’s another potential sign of sellers losing control.
Third, the Relative Strength Index has shown positive divergence over the same time period.
Finally seasonality and fundamentals could be in play as travel rebounds into the holidays. TSA data shows daily flights consistently back above 2 million per day. AAL also reported strong quarterly numbers last week (echoing the results of peers like Delta Airlines and United Airlines ).
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