AAL rallies 5.02% closing $0.66 higher
American Airlines Group Inc. (AAL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
AAL finished Wednesday at 13.80 surging $0.66 (5.02%), significantly outperforming the Nasdaq 100 (-1.67%). This is the biggest single-day gain in over three weeks. Today's close at 13.80 marks the highest recorded closing price since August 10th. Closing above Tuesday's high at 13.66, the market confirmed its breakout through the previous session high after trading up to $0.30 above it intraday.
Daily Candlestick Chart (AAL as at Sep 16, 2020):
Wednesday's trading range has been $0.98 (7.42%), that's above the last trading month's daily average range of $0.77. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AAL.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After trading as low as 12.98 during the day, American Airlines found support at the 20-day moving average at 13.14. The last time this happened on July 23, 2019, AAL gained 2.55% on the following trading day. Prices are trading close to the key technical resistance level at 14.26 (R1). After having been unable to move lower than 13.08 in the prior session, the share found buyers again around the same price level today at 12.98.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 14.16 where further buy stops might get activated. As prices are trading close to September's low at 12.66, downside momentum could speed up should the stock mark new lows for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for American Airlines. Out of 99 times, AAL closed higher 53.54% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.57% with an average market move of 1.47%.