Checking back in with American Airlines. As always, hit the search on our page and look up our previous AAL posts for more info as we tend to continue where we left off on the analysis.
Quick Recap:
American Airlines 1st Quarter numbers came in and as expected, they weren't good, down -$2.2 Billion.
They're looking for ways to cut costs as they are/were burning through $50-$70 million per day.
US airline travel as a whole was down approximately 95% compared to the same time last year.
Technical Analysis:
The $8.50-$9.14 area seems to have found some support for AAL as stock has decently bounced both times when hitting these levels at the bottom of the fib retracement. RSI has been rising and the price has yet to really follow. MACD looks like it's preparing to crossover to the positive side, but as always we will wait for confirmation before drinking the Kool-Aid. DMI is on the positive side but the ADX isn't rising with it showing strength.
Fundamental Analysis:
Most analysts still have this stock as a Hold or Sell rating at the moment and that's completely understandable still. If you see our previous posts we're still waiting to see people booking plane tickets until we hop back in. The next earnings report isnt expected to be any better than the first one as AAL is projected to report earnings of -$6.51 per share, which would represent a year-over-year decline of 457.69%. That being said, if AAL can cut costs and stay afloat, there is definitely a lot of room for upside as the stock isn't even near its 50 MA (we used 55ma in this chart - the yellow line). This one is still a risky play. If you would like to ladder buy into this one would be the best play, with a tight stop loss around the $8.50 area for the time being.
Brief reminder, airlines can most definitely fail. American Airlines is still fresh off it's bankruptcy that occurred in late 2011.
Hit us with a like and a follow for more updates. Cheers!
Disclaimer:
I do not provide personal investment advice and I am not a qualified licensed investment advisor. I am an amateur investor.
All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. I will not and cannot be held liable for any actions you take as a result of anything you read here.
Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on here, expressed or implied herein, are committed at your own risk, financial or otherwise.
Quick Recap:
American Airlines 1st Quarter numbers came in and as expected, they weren't good, down -$2.2 Billion.
They're looking for ways to cut costs as they are/were burning through $50-$70 million per day.
US airline travel as a whole was down approximately 95% compared to the same time last year.
Technical Analysis:
The $8.50-$9.14 area seems to have found some support for AAL as stock has decently bounced both times when hitting these levels at the bottom of the fib retracement. RSI has been rising and the price has yet to really follow. MACD looks like it's preparing to crossover to the positive side, but as always we will wait for confirmation before drinking the Kool-Aid. DMI is on the positive side but the ADX isn't rising with it showing strength.
Fundamental Analysis:
Most analysts still have this stock as a Hold or Sell rating at the moment and that's completely understandable still. If you see our previous posts we're still waiting to see people booking plane tickets until we hop back in. The next earnings report isnt expected to be any better than the first one as AAL is projected to report earnings of -$6.51 per share, which would represent a year-over-year decline of 457.69%. That being said, if AAL can cut costs and stay afloat, there is definitely a lot of room for upside as the stock isn't even near its 50 MA (we used 55ma in this chart - the yellow line). This one is still a risky play. If you would like to ladder buy into this one would be the best play, with a tight stop loss around the $8.50 area for the time being.
Brief reminder, airlines can most definitely fail. American Airlines is still fresh off it's bankruptcy that occurred in late 2011.
Hit us with a like and a follow for more updates. Cheers!
Disclaimer:
I do not provide personal investment advice and I am not a qualified licensed investment advisor. I am an amateur investor.
All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. I will not and cannot be held liable for any actions you take as a result of anything you read here.
Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on here, expressed or implied herein, are committed at your own risk, financial or otherwise.