AAL - Bullish SignalFundamentals
1. Dark Cloud is over - Earning is out, burning is out. Negative earning for sure, but the price rallied. No more severe negative news is expected.
2. Short Squeeze - A lot of short sellers expected something really bad. Now they have to close down their positions. That means they wil lhave to buy.
3. A stimulus package might be one the way for airlines.
Technicals
1. 11.50 turns out to be a strong support level. Price rallied from that. Seems like the market has determined 11.50 as the absolute low for AAL.
2. Price hit the lower band and rising. WHile lower band also is on support level.
3. MACD line rises above the signal line.
4. MACD histogram started to rise.
5. Price is creeping up on MA20
AAL trade ideas
FundaTechno Analysis | Earnings tmr, oversold, value stonks?The worst of layoffs and restructuring is priced in, I am thinking it will not take much during the earnings call to improve investor outlook. Even if results are mixed, the expected stimulus (catalyst) will include airlines. House/senate is "negotiating" the final deal this week, with an announcement prob sometime next week. Tight stop loss from $11 in case of invalidation.
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I'm long in AAL till $24 and $27This is no trading advice, only ideas sharing.
At some point, ALL has to fill in the gap at $27.
So far, the channel looks good and I expect a bounce soon. The first target should be $24, where there is some resistance. If it goes through, I expect the gap close at $27.
Considering the upcoming earnings tomorrow, everybody is expecting for losses.
It may drop short for it may be a fake drop.
Of course, there is the change to see a double bottom at $8.
But, I'll stick to my plan and sell at $24.
OPENING: AAL AUGUST 21ST 10 SHORT PUT ... for a 1.02 credit.
Metrics:
Max Profit: $102/contract
Max Loss: $898/contract (assuming stock goes to zero)
Break Even/Cost Basis: 8.98/share
ROC% at Max as a Function of Notional: 11.4%
Notes: High implied at 171%. Looking to wheel this if it doesn't stay above 10 (i.e., acquire shares, cover).
American Airlines: Getting closer to demand levels Gonna rocket with upcoming news on successful covid-19 vaccine tests.
The more it stays side-trending in current levels, the more powerful pump will become, once price breaks out of curved triangular formation into safe range colored blue.
Anyways, zoom out to see where the green support zone comes from, because it is based on key lowest parts of the chart.
AALLast time selling volume where here , it follow with strong rise up .
MEANWHILE with VIX Index Journey to 25% start and giving other american index stability on the right levels -which is perfect for pre-election , and all the world hoping and following covid-19 drug news.
ITS buy and hold trade for 2 weeks it would be your responsibility to find the right exit or if u any thing like me
i will hold it until i see it next year at 80 price for share .
which would be at that time very normal when we watch airline Companies passing the corona-virus disaster and Travel restrictions .
it would grant huge safe for high yield and this would make it much much attractive for investors and Speculators