Is American Airlines Stock About To Take Off?

The last time shares of American Airlines Group Inc. AAL reached the $25.10 level was in the middle of March. They ran into a wall of sellers and a downtrend followed.

The stock has reached this level again.

If shares trade above this important level and hold for a few days, it will mean that the sellers who created the resistance are gone. With this supply out of the way, the stage will be set for buyers to force prices higher.

But if the resistance doesn’t break, American Airlines could trend lower again. With oil prices rising like they are, the shorts may start to target stocks that are hurt by higher oil prices. These include airlines.

See Also: Airline Stocks Up Following Strong Memorial Day Weekend Bookings