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American Airlines Group Inc. - (AAL) - January 29, 2021 

American Airlines (AAL) has returned to the Green Favored Zone of the SIA S&P 500 Index report after a 9.3% rally off earnings propelled the shares up 141 spots in one day to 85th place.

A recovery trend continues to emerge in American Airlines (AAL) shares. Back in November, the shares completed a bullish Ascending Triangle patter with a breakout over $15.00 which has since reversed polarity and been established as current support. Yesterday, the shares rallied up off of $15.00 on volume, a sign of renewed interest.

Current upside resistance remains in place near $20.00 a round number which coincides with the June 2020 high. A breakthrough there would complete a larger ascending triangle base and confirm the start of a new uptrend. Should that occur, next potential upside resistance would appear near the $25.00 round number, then $26.75 based on an active measured move, and then $31.75 based on the convergence of a pending measured move and a previous high.

American Airlines (AAL) has come under renewed accumulation in recent months, starting with a bullish Quadruple Top breakout back in November, and the snapping of a long-term downtrend line back in December. The shares had paused into January but have started to move up again, challenging their previous high near $18.35 where a breakout would complete a bullish double top and signal the start of a new upleg.

Next potential upside resistance on a breakout appears the June 2020 peak near $20.65, then a previous low near $24.65 and then $25.65 based on a horizontal count. Initial support appears near $16.60 based on a 3-box reversal.

With a bullish SMAX score of 8, AAL is exhibiting near-term strength against the asset classes.

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