The technical picture of the American Airlines Group Inc. stock (NASDAQ: AAL) on our 4-hour chart shows that currently, the share price is stuck between two short-term trendlines, an upside one drawn from the low of March 8th and a downside one taken from the high of April 21st. For now, we will wait for a clear break through one of those lines, in order to consider the next short-term directional move.
If the aforementioned upside line gets violated and the stock then falls below the current lowest point of May, at 15.09, this will confirm a forthcoming lower low, scaring off more buyers for a while. AAL may then drift to the next support area between the 13.47 and 13.71 levels, which mark the lows of March 10th and 14th. If there are still no new buyers around that area, the slide might continue, potentially targeting the 12.45 level, marked by the lowest point of March.
The RSI is currently flat and remains below 50. The MACD is pointing slightly to the downside, while running below zero and the signal line. The two oscillators show negative price momentum, supporting the above-discussed scenario.
Alternatively, if the stock breaks the previously discussed downside line and also climbs above the 17.15 barrier, marked by the high of May 20th, that may invite more buyers into the game. AAL could then rise to the 17.84 obstacle, or even to the 18.76 zone, marked by the inside swing low of May 4th. If the buying doesn’t stop there, the next possible aim might be at 19.64, which is the current highest point of May.
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