The technical picture of the American Airlines Group stock (NASDAQ: AAL) on our daily chart shows that the share price is currently trading below a short-term downside resistance line taken from the high of June 2nd. However, it continues to balance above one of its key support areas, at 18.28, marked by the lowest point of July. The short-term trend points to the downside, but in order to aim for a further move south, a drop below the above-mentioned support area would be needed.
If that drop happens, this will confirm a forthcoming lower low, potentially keeping the buyers away from the playing field for a while. AAL might then drift to the low of February 18th, at 17.45, a break of which could set the stage for a move to the 16.33 zone. That zone marks the lowest point of February. If there are still no new buyers around that price, the stock might drift to next possible support area between the 14.77 and 15.02 levels, which mark the lows of January 11th and 25th respectively.
The RSI is currently pointing to the upside but remains below 50. The MACD remains flat but continues to run below zero and its trigger line. The two oscillators show negative price momentum overall but seem to be in support of waiting for the above-mentioned breakout.
Alternatively, if the stock moves higher, breaks the aforementioned downside line and then climbs above the 21.48 barrier, marked by the current highest point of August, that could attract more buying interest. AAL may then fly to the 22.14 hurdle, marked by the high of July 27th, where it could receive a temporary hold-up. That said, if there is still enough buying interest near that hurdle, the share price might travel further north, to the 23.12 level, which is the high of June 17th.
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