Technical Analysis: 23 November 2021

American Airlines Group, Inc (AAL US)

Range bound trade; Support around 18.8, resistance around 22.3
Shares look like about to turnaround from downtrend; RSI rebounded over the last 2 days
Entry point at 5dMA which shares have been trading near
Long – Entry: 19.7, Target: 22.3, Stop: 18.8

Shares formed a bullish engulfing pattern at the 200dEMA level with a surge in volume.
It gapped up on the following day, forming an island reversal pattern.
Long – Entry 0.29, Target 0.33, Stop 0.275

Shares are poised to form a cup and handle pattern if it is going to consolidate after resting the highs in April.
It has bottomed out since August. Both MACD and RSI are showing a consistent recovery.
Long – Entry 1.3, Target 1.4, Stop 1.26

Shares had been trading above the 60dEMA level, forming higher highs and higher lows. Each time after breaking a new high, shares corrected and built a higher consolidation base.
The next Fiboncci support level is HK$297, and the following support is the 60dEMA level (HK$278).
MACD lines are about to cross, showing new upward momentum. But it needs confirmation. RSI remains at above 50, implying positive sentiments.
Long – Entry: 295, Target: 325, Stop: 278

Shares had been slowly edging up. And it was trading at above 5dEMA for most of the trading days after bottoming out in late September.
The 5dEMA managed to cross the 20dEMA, and it is about to cross the 60dEMA.
MACD and RSI had been constructive for two months, implying a consistent recovery.
Long – Entry: 19, Target: 21.25, Stop: 18.4