Trading Plan on AAL | What we are expecting
Today, we will take a look at American Airlines Group from a technical perspective.
The main aspect we can observe is the weekly trendline working as dynamic support since 2008. We can consider it a major level from where we have observed lasting bullish impulses in the past.
Alright, if that's our support level to start thinking in bullish opportunities, we need to make sure that minor levels have also been broken. In this case, we have a descending trendline that started in 2018. The price broke it in March this year.
After the breakout, the price has been consolidating on a range from March 2021 until the current date.
The trading plan here is about waiting for the breakout of the current structure (yellow lines). IF that happens, we will be waiting for a small correction on the daily chart, and we will execute orders on the new local high.
Targets: On the weekly chart, we can see a major resistance zone around 56. However, we are not using that target because we may get stuck in long corrections. That's why we will use a minor resistance zone at 44.00
R/R ratio = 4.
Risk on the stop loss = 3%
Expected duration: 200 days
The main idea of defining a situation in advance is that we already know how to trade IF we observe these conditions; otherwise, we will not be trading (you have more than 1000 charts to keep looking for premium opportunities)
Thanks for reading! Feel free to add your charts and ideas, on the comment's box
The main aspect we can observe is the weekly trendline working as dynamic support since 2008. We can consider it a major level from where we have observed lasting bullish impulses in the past.
Alright, if that's our support level to start thinking in bullish opportunities, we need to make sure that minor levels have also been broken. In this case, we have a descending trendline that started in 2018. The price broke it in March this year.
After the breakout, the price has been consolidating on a range from March 2021 until the current date.
The trading plan here is about waiting for the breakout of the current structure (yellow lines). IF that happens, we will be waiting for a small correction on the daily chart, and we will execute orders on the new local high.
Targets: On the weekly chart, we can see a major resistance zone around 56. However, we are not using that target because we may get stuck in long corrections. That's why we will use a minor resistance zone at 44.00
R/R ratio = 4.
Risk on the stop loss = 3%
Expected duration: 200 days
The main idea of defining a situation in advance is that we already know how to trade IF we observe these conditions; otherwise, we will not be trading (you have more than 1000 charts to keep looking for premium opportunities)
Thanks for reading! Feel free to add your charts and ideas, on the comment's box