American Airlines Stocks Reaches Support, May Rebound

Shares of American Airlines Group Inc. AAL have been in a steep decline. Since the beginning of June, they've lost about 20% of their value...but there’s a chance the sell-off is over.

Shares have reached a support level. At these levels, there is more demand than supply. Buyers absorb all of the shares that are offered. Sellers can sell all they need to without fear of pushing the price lower. This is why selloffs end when they reach them.

Sometimes stocks rally after reaching support. This is what happened with AAL when it reached the $20 level in April. Now the shares have reached this important level once more.

There’s a chance they rebound again.