AAL closes below its opening price unable to hold early session gains
American Airlines Group (AAL) Technical Analysis Report for May 17, 2018 | by Techniquant Editorial Team
AAL finished Thursday at 43.63 losing $0.43 (-0.98%). Trading $0.61 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (AAL as at May 17, 2018):
Thursday's trading range was $1.02 (2.32%), that's below last trading month's daily average range of $1.39. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being way below average.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving higher in the previous session, American Airlines closed lower but above the prior day's open today, forming a bearish Harami Candle.
Breaking below the key support level at 43.81 today, it is now likely to act as resistance going forward.
While the share is experiencing a short-term up trend, this might just be a correction, as both the medium and long term trends are still in negative territory.
Buying could accelerate should prices move above the nearby swing high at 44.91 where further buy stops might get triggered.