AC - Air Canada - Falling Wedge Falling Wedge w/ RSI 4HR Bullish Divergence after dropping below 30, at an important reversal area looking left.
Stop Loss below 19.33 , layering positions inside of reversal area.
AC trade ideas
Air Canada Analysis 10/18/24DISCLOSURE: As of 10/18/24 I have no open positions in Air Canada TSX: AC
Air Canada is a Canadian airline who took a big hit during COVID and added a lot of debt to their business. Because of the unstable financial position the valuation is very low and could provide large returns in the event of a turnaround.
The Debt
Looking at the debt ratios the debt/equity looks very high, but the debt/asset ratio looks much better. Of course as all airlines do they use debt to buy their planes and other assets. However it is worth noting that the debt here is a problem. (Higher than competitors)
For a long term buy and hold I would like to see much more cash on the balance sheet, but this is a turnaround play after all. If Air Canada's margins decrease to unprofitable they may be forced to sell assets to cover liabilities.
Qualitative
Looking at the qualitative metrics it is obvious that Air Canada took large losses in 2020 but has since recovered in terms of earnings, revenue, and margins. The stock price however has not recovered, this is likely due to the debt load they are stuck with now.
From a long term perspective airlines are notoriously bad businesses struggling with debt, unprofitability, and an extremely competitive environment. This is why I only intend to hold this stock for a maximum of 3-5 years.
Valuations
The valuations are where things start to look up for this company. With a price/cash flow of 1.75 you would be getting your investment back in about 1 year 9 months. On the other hand if they lose money and are forced to sell assets the stock will likely remain flat or decline further.
The way I view Air Canada is as an asymmetric bet. For example, I assigned some arbitrary values to my model where I see a 25% chance that they sell off assets. a 50% chance that earnings and margins remain stable and a 25% chance that earnings and margins increase
In the worst case scenario the stock will likely fall another 25%-50% and in the best case scenario AC could be a 4x from current valuations. Of course the risk/reward I am assigning to these values is subjective and I highly suggest doing your own research to see how you feel about these outcomes.
For me at current prices Air Canada TSX: AC is a buy. So long as you keep in mind the potential risks and dont be shocked if the 25% chance of the downside materializes.
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AC BearishAC is going toward the bearish scenario path
Bear flag breakout or uptrend parallel channel breakout to the downside
Target 16- 16.7 $
Air Canada AC.TO - BearishAC has breached the upward trend channel, accompanied by a Head and Shoulders formation. The neckline support, situated around 18.05, has been breached. I anticipate a downside potential with my initial target at TP1 = 17.03 and TP2 = 16.57 CAD $. Best of luck to everyone, but please remember that this solely reflects my opinion. Conduct your own analysis and risk assessment.
Air Canada can jump above 20$AC is moving in an Uptrend channel, looking very bullish and undervalued at the current price. Most analysts target is 32$
$AC Long buy Alerts SetPatience pays off.
Looking to average down during a consolidating down trend.
This is not a quick play - looking long term. 12-18 months.
Air CanadaLooking juicy.
Weekly chart shows higher highs and higher lows, and when RSI hits 40, reverses trend from down to up.
Broader marker is the only unknown, and will get in when weekly shows consolidation.
Risk to Reward Ratio is the key to constant wins at tradingI love writing those articles on my Blog, mainly because I learn from reviewing my trades & secondary for the value it gives back to the trading community.
I been preaching Trading is simple but not easy. It is based on following a winning trade plan. & how do you find such a plan? Try & fail, Try & succeed there is no other way. There is the possibility of a generous soul teaching how a winning strategy & thats what I hope to do in this article. I will share 2 rules
Rule number 1 Always trade the bigger picture.
Find out what the bigger picture chart is doing & trade based on that. In this trade am placing my trade decision in the (W) chart the top chart in white. My bigger picture chart is the monthly (M) not shown. And the chart I use to time my enter & exit is the Day chart (D) below in Black
Rule number 2 Risk to Reward ratio,
This should be rule #1 but I placed it as number 2 to add importance to the rules of trading the bigger picture. Aim for a Risk to Reward ratio of 3 to 5. This means you asses the Risk (how. much money you can loose) before you asses the Reward (how much money you can win).
In this trade, the bigger picture chart (M) is in a downtrend. The trading chart (W) comes into untested Supply Zone (SZ) with a Risk of less than a dollar. I take my SHRT in the red Circle
The reward is 4-5 dollars per share, mostly due to a price free fall zone, with little Demand zone (DZ) to challenge the price. I took profit at two point marked by the red X in the Daily chart.
There are odd enhancers as to why I took this trade, but they are outside the scope of this blog. If you like to learn more about my winning trading strategy that I been practicing for 11 years. Follow my Blog & learn to trade smarter.
ACAC heading out to taxi for next flight. Divergence on 1hr MACD. Lower lows in price divergence with higher lows on MACD. $sold a bit early at $25. $21 likely the target. Strategy would be dollar cost averaging on way down with 1% positions and then more aggressive when MACD bounces off the zero line. Target 29.50
Watch the zero line on MACD being crossed on 1hr, 4hr, and daily for entries.
Trade safe~ :)
Air Canada (AC TSX) new updatehello everyone...
this is for Canadian stock tsx air Canada stock ticker AC
in my previous analysis the trade hit the target of $23
immediately after that the price pulled back and currently trading around 18
The price reached the support level... the price could consolidate till the earning and revenue report
depending on the report the price can pull back to strong support area... if news is good then price can continue in an uptrend direction.
Looking closely to daily and weekly timeframe the price seem to go in an uptrend direction..
the highest price can reach this year is about 28-30 since that is the strongest resistance area since 2017... if that is broken then 50...
good luck..
$SHORT pullback $TSX:AC Great opportunity for pullback coming up TSX:AC
Wait for confirmation on H4 (Couple of long wick candles rejecting the trendline with multiple attempts. As weekly trendline going with 4 touches above and 3 touches below. I also identified supply (red) and demand (green) rectangle on weekly chart. Im going with a ratio of 3.65, but i'd be confident with a ratio of 1:4 risking max 2%.
Below is the H4:
Air Canada (AC TSX)hi everyone...Air Canada stock is making a ascending triangle on bullish divergence area of Macd and RSI.. this is potential the price can test $22 and above
the price is also have the 50 sma so price most likely will make uptrend channel
good luck
AC is long but needs some volume AC is now bullish as wave 5 of Wolfe has finally completed and formed a diamond reversal pattern. First target is the lid of that corrective channel and if successfully penetrated, the final target is shown in the arrow.
AC Daily TimeFrame Analysis (ID 2)✳️Position ID: 2
📈Stock: AC
🏦Exchange: TSX
⚖️Leverage: 0% (x:x)
💰Price: 17.31$
🔥Quantity: 2
🐃Position: Long
⏱Duration: 6 months to 5 years
💥Upside: 29.31% at 22.38$
*Info based of Q1 2022
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Full Analysis (Price Action, ichimoku, & more!) on AC! BTFD!My friend is heavily invested in Air Canada and was looking for some potential break outs (or break downs!), so I ran through the whole analysis playbook of how I look at stocks.
In this video, I cover how to analyze price action, fibonacci, some pattern techniques, moving averages, and ichimoku.
Overall, I'm looking to buy the dips with optimal entry around $21.35. My stop would be around $19.11, with my first Price Target around $34, putting us at a R/R of 13/2.5 = 5:1! I'd be looking for a big move within 2 weeks (by April 25). I'd 100% play $26-27 July 2023 calls.
Good luck out there and let me know if you want me to take a look at any other tickers!
Cheers,
-TMoney
Air Canada Canada Sun Storm Investment Trading Desk & NexGen Wealth Management Service Present's: SSITD & NexGen Portfolio of the Week Series
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Air Canada ACTSX:AC
Hello there!
Airlines are the next bullish trend with the recovery from Covid. I expect AC to perform well in the next two years. In the short term, I noted a repeated pattern with the triangle in the chart.
Air Canada in troubleAir Canada will touch the support early 2022. The new variant will do a lot of damage going into the new year.
Air Canada Canada Sun Storm Investment Trading Desk & NexGen Wealth Management Service Present's: SSITD & NexGen Portfolio of the Week Series
Focus: Worldwide
By Sun Storm Investment Research & NexGen Wealth Management Service
A Profit & Solutions Strategy & Research
Trading | Investment | Stocks | ETF | Mutual Funds | Crypto | Bonds | Options | Dividend | Futures |
USA | Canada | UK | Germany | France | Italy | Rest of Europe | Mexico | India
Disclaimer: Sun Storm Investment and NexGen are not registered financial advisors, so please do your own research before trading & investing anything. This is information is for only research purposes not for actual trading & investing decision.
#debadipb #profitsolutions
