With the earnings data of American Airlines just around the corner, now seems like the perfect time to consider going long on ALL's stock at the most opportune moment.
The coronavirus pandemic has pressured the stock as the tourism sector as a whole suffers from low activity - this was exacerbated recently with the global uptick of new cases - but the situation is improving.
AAL has consolidated above the psychologically significant support level at 20.00, which entails the potential emergence of a new bullish trend from said level.
Notice that the price action is currently in the process of establishing a major Falling Wedge which represents a classic trend continuation pattern. Once the price action manages to break out decisively above the Wedge's upper boundary, this would allow for the rally to continue advancing further north. The previous swing peak at 26.00 represents the first major target for the bulls.
Keep in mind that the market is currently ranging - as elucidated by the fact that the ADX indicator is threading below the 25-point benchmark, which means that the price is likely to continue fluctuating within the Wedge in the foreseeable future.
AAL is likely to attempt another false breakdown below 20.00 before it can break the range and establish a new uptrend.
The coronavirus pandemic has pressured the stock as the tourism sector as a whole suffers from low activity - this was exacerbated recently with the global uptick of new cases - but the situation is improving.
AAL has consolidated above the psychologically significant support level at 20.00, which entails the potential emergence of a new bullish trend from said level.
Notice that the price action is currently in the process of establishing a major Falling Wedge which represents a classic trend continuation pattern. Once the price action manages to break out decisively above the Wedge's upper boundary, this would allow for the rally to continue advancing further north. The previous swing peak at 26.00 represents the first major target for the bulls.
Keep in mind that the market is currently ranging - as elucidated by the fact that the ADX indicator is threading below the 25-point benchmark, which means that the price is likely to continue fluctuating within the Wedge in the foreseeable future.
AAL is likely to attempt another false breakdown below 20.00 before it can break the range and establish a new uptrend.
