After spending all of 2016 through 2019 in the yellow or red zones of the SIA S&P 100 Index Report, American Airlines (AAL) has now returned to the Green Favored Zone for the second time this year. Yesterday, the shares climbed 35 spots to 67th place and they have now ascended 356 spots in the last month.
A major breakout is underway in American Airlines (AAL) shares which recently completed a big rectangular base which had formed between $10.50 and $15.00. Since clearing $15.00, the shares have continued to climb, advancing toward $17.50.
Potential upside resistance tests on trend appear around previous highs near $18.50 and $22.50, measured moves near $19.50 and $24.00 and the $20.00 and $25.00 round numbers, the last of which is also a former support level. Initial trailing support moves up toward $16.00 from the $15.00 breakout point.
After a false start back in the spring failed, American Airlines (AAL) spent July through November base building in the $11.00 to $14.00 range. In the last month or so, accumulation has accelerated. Starting with a bullish Quadruple Top breakout, the shares have been consistently climbing without even a 3-box correction, completing a bullish Spread Double Top pattern as well. Yesterday, the shares snapped a long-term downtrend line and are currently testing resistance at previous column highs.
A breakout over $17.26 would confirm that the current advance continues with next potential resistance at the June high near $20.65, then the $24.65 to $25.65 range where vertical/horizontal counts and previous column lows congregate around the $25.00 round number. Initial support appears near $15.60 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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