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- AAL stock price started falling after breaking a major support in March 2023.
- The stock is in a consolidation phase with the possibility of a breakout.
- The price has bounced off its support levels and is looking to move towards its immediate resistance level.
AAL stock price faced a significant decline starting in early February of this year. Initially, the stock encountered resistance at the 50-day EMA and later at the 200-day EMA towards the end of February. This bearish crossover eroded investor confidence, leading to a substantial drop in the AAL stock price, which eventually reached a support level of £2509.
There was a brief upward movement in prices in April, offering a glimmer of hope for the bulls. However, this optimism was short-lived as bears returned and breached the critical support level of £2509. Following a consolidation period lasting four months, the downtrend gained momentum, breaking through the £226 support level at the beginning of August and resulting in the current price actions.
Technical Analysis and Price Prediction of AAL Stock
At the time of writing, AAL stock price is trading at £2136 after bouncing off its major support level of £1980. The price is now moving toward its immediate resistance level of £2226 which was a previous support level that got breached. Additionally, the 2nd support and resistance levels are at the levels of £1804 and £2509, respectively.
MACD, EMA, and RSI levels
The RSI is giving a bullish signal as the stock has bounced off its support. The RSI line spiked after touching its oversold zone of 24. Soon after this, its SMA at the level of 35 made a bullish crossover with the RSI, reflecting a rise in the strength of pricing.
Moreover, MACD also shows something similar. During the last few days of August, the MACD line and its EMA made a bullish crossover. However, they are still below the neutral zone of zero. Currently, the MACD line is at -48 and its EMA is at -66.
On the other hand, the EMAs of the stock have been showing a constant downfall after February of this year. The 50 EMA has been a hub for the bears as it has rejected the price levels twice in June and July. Currently, the 50 EMA is at £2211 and the 200 EMA is at £2576.
What is the price prediction for AAL stock?
The conclusion of the technical analysis shows that the price will rise till its resistance level of £2226. The possibility of the bulls breaking past this resistance level seems low and so, it is likely to fall back to its support level of £1980. This trend will continue until a significant momentum toward either side causes a break out of the consolidation zone.
Technical Levels
Support: £1980, £1804
Resistance: £2226, £2509
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
