AAL on a daily hit the top of the trendline and a confluence point of a very strong horizontal resistance and reversed.
There was a very strong support Dec - May @46.50 which was tested in the past week and now it has become a strong resistance. The previous couple of trading days have formed a hammer and an inverse hammer. After the hammer for an uptrend we should have seen a bullish candle instead we got something totally opposite indicating suppliers are taking control. It found support @200dma and 21dma, breaking which should definitely result in lower prices for AAL.
Some initial support @43.74 after which prices can be seen near 42. If entering a trade on the short side the stop loss could be set @47.09.
There was a very strong support Dec - May @46.50 which was tested in the past week and now it has become a strong resistance. The previous couple of trading days have formed a hammer and an inverse hammer. After the hammer for an uptrend we should have seen a bullish candle instead we got something totally opposite indicating suppliers are taking control. It found support @200dma and 21dma, breaking which should definitely result in lower prices for AAL.
Some initial support @43.74 after which prices can be seen near 42. If entering a trade on the short side the stop loss could be set @47.09.
