American Airlines ( AAL) is scheduled to report latest earnings on Thursday morning. I am a pretty loyal American customer, but I will put that aside when I look at the charts and indicators.
In this daily bar chart of AAL, below, I see a mixed picture. On the bullish side, I can see that prices broke out on the upside from a sideways trading range in January, but I can also see a key reversal day last week as prices retreated from gains above $17.
AAL has continued to pull back and the daily On-Balance-Volume (OBV) line has corrected. The Moving Average Convergence Divergence (MACD) oscillator has narrowed and is close to a downside crossover and take-profit sell signal.
In this weekly Japanese candlestick chart of AAL, below, I see an upside breakout above the 40-week moving average line, but the derivative indicators are not supporting the move to the upside. The weekly OBV line has been neutral the past three months. The MACD oscillator is narrowing and does not look like it has crossed above the zero-line.
In this daily Point and Figure chart of AAL, below, I can see an upside price target in the $20 area.
In this weekly Point and Figure chart of AAL, below, I can see a price target in the $21 area.
Bottom line strategy: It would be easy to say that the problems of southwest ( LUV) , are not the problems of AAL but looking at AAL independently I still would rather stay in the terminal and not buy shares in AAL ahead of earnings Thursday.
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Here's where the charts show this chipmaker heading.
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