American Airlines Group - Head & Shoulders BounceAAL is looking like it is on track to drop to between $28 and $25 per share middle to end of October (before the earnings report). As the head and shoulders pattern has been completed (passing an averaged neck line : $36-34) and then continued downward, I believe it is a strong position to assume the bottom will be reached soon.
Even if the price falls below $25 (lowest target buy) for the rest of the year I do not foresee a loss in the long 'buy and hold' till end of next summer (2015). Given the strength of the US dollar and overproduction of oil putting downward pressure on fuel price, I would expect the price of AAL to whiplash back up after health scares have passed.
Also, keep in mind the merger of American Air and US Air is in its early stages, a handful of kinks had needed to be worked out before corporate efficiency improved a great deal. It has been mentioned that the merger of all corporate financials, customer information, flight databases, etc, would not be close to complete until 2015.
My hope is that the price will double again (as seen in 2014 peak) and perhaps push even higher.
