American Airlines Group Inc. (AAL) has made a low recently but more work may be needed to establish a bottom.
In this daily bar chart of AAL, below, we can see prices in a four month slide from the lower peak in March. The 50-day moving average has had a bearish or negative slope since late March and AAL bounced the other day to the underside of this indicator. The slower-to-react 200-day average line is well above the market with a bearish slope. There was a volume spike to around 25 million shares earlier this month at the price low. This kind of volume could mean that some bulls "threw in the towel." The daily On-Balance-Volume (OBV) line has only inched slightly higher from the early July low and is not signaling much in the way of aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator crossed to the upside two weeks ago for a cover shorts buy signal. An outright go long signal isn't here yet.
In this weekly bar chart of AAL, below, we don't have much in the way of positive direction. Prices are below the declining 40-week moving average line. The weekly OBV line has been weak all year and suggests that sellers have been more aggressive for months. The weekly MACD oscillator has narrowed a little but is a few weeks away from even a cover shorts buy signal.
In this Point and Figure chart of AAL, below, we can see an upside price target of $45.04 being projected but there is resistance above $43 on the chart.
Bottom line: AAL could trade higher from here but I would prefer to see a $36-$42 trading range for a number of weeks or even a month or two before I was comfortable with the long side.