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American Airlines Group Inc - (AAL) - June 28, 2023

With travel related stocks attracting increased interest on anticipation of a strong summer vacation season, American Airlines (AAL) has been rising up the rankings in the SIA S&P 500 Index Report in recent weeks, climbing up out of the red zone and returning to the Green Favored Zone for the first time since March. Yesterday, AAL finished in 94th place, up 29 spots on the day and up 214 positions in the last month. A major breakout is underway in American Airlines (AAL) shares. For the last year, the shares have been base building in the $12.00 to $17.50 range, building a base for recovery after a long-term downtrend bottomed out over the second half of 2022. In April, a higher low indicated that an uptrend was emerging, which has accelerated since a breakout over $15.00 earlier this month. Recently, the shares have snapped out of a long-term downtrend, confirming that a recovery trend has commenced.

Initial upside resistance may appear at the January peak near $17.50, followed by the $20.00 round number, and the April 2022 high near $21.50. Initial support has moved up toward $16.00 from $15.00.

A year of base-building in American Airlines (AAL) shares has successfully concluded with a bullish Spread Double Top breakout over $17.25. This move builds on previous Double Top breakouts and the snapping of a downtrend line to kick off a new uptrend.

Initial upside resistance appears in the $19.45 to $20.25 range based on a cluster of previous column highs, a horizontal count and a round number, followed by previous highs near $22.30. Initial support appears near $15.95 based on a 3-box reversal.

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

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