Since returning to the Green Favored Zone of the SIA S&P 500 Index Report last month, American Airlines (AAL) has continued to ascend in the rankings. In the last month, it has climbed 257 spots to 34th place, including a gain of 10 places yesterday.
A major breakout is underway in American Airlines (AAL) shares. Launching up off of $15.00 trend support, which had previously been a resistance level, the shares have regained $20.00 this week for the first time in a year, completing a bullish Ascending Triangle pattern. Currently, the shares are testing downtrend resistance near $22.50, where a breakout would confirm the start of a new uptrend.
Next potential upside resistance on trend appears near $25.00 where a round number and previous support level converge, followed by the $29.75 to $30.00 area where a measured move, round number and previous support/resistance cluster. Initial support moves up to the $20.00 round number and breakout point.
Back in November, American Airlines (AAL) broke out of a base, completing a bullish Quadruple Top pattern and then snapped an uptrend line in December to signal the start of a new uptrend. The shares consolidated normally for a few weeks while higher lows indicated that underlying accumulation remains intact. This month, the shares have embarked on a new upleg, completing a bullish Triple Top pattern, regaining the $20.00 level and climbing above its June 2020 peak.
Next potential upside resistance appears near $27.25 where vertical/horizontal counts and previous column lows converge, followed by $30.00 where previous column highs/lows and a round number converge. Initial support appears between $19.80 and $20.00 where a three-box reversal and a round number converge.
With its bullish SMAX score increasing to a perfect 10, AAL is exhibiting near-term strength across the asset classes.
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