American Airlines Group, Inc. ( AAL) may need to get its landing gear down and ready in the days ahead. Prices have been in downtrend since early 2018 and now prices have fallen to a key low from 2016. Let's review the charts and indicators before we file a flight plan.
In this daily bar chart of AAL, below, we can see a clear pattern of lower highs and lower lows going back 12 months. The declining 200-day moving average line has operated as resistance and rejected every bounce.
The shorter 50-day line has also been in a decline for the past year. The daily On-Balance-Volume (OBV) line has trended lower the past year to confirm the weak price action. Sellers of AAL have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator is below the zero-line, but recently crossed to the upside for a cover-shorts buy signal. An outright go-long signal is not around the corner.
In this weekly bar chart of AAL, below, we can see a longer downtrend from early 2018. Prices are back down to the low of 2016 and early 2014. AAL is below the declining 40-week moving average line and the weekly OBV line just made a new low for the move down. The 2016 low in the OBV line is not far away. The MACD oscillator is in a sell configuration.
In this Point and Figure chart of AAL, below, a potential downside price target in the $16 area is projected.
Bottom line strategy: AAL has been circling lower and lower. With a $16 Point and Figure target you might want to book on another airline.
