Skyward Signal: American Airlines' Golden Cross Marks Bullish Trajectory

American Airlines Group Inc AAL just made a Golden Cross. The stock hardly moved through 2023, gaining just under 8%. So far in 2024, the stock is already up 8.44%. As one of the top four U.S. airlines, this movement marks a significant moment for the company.

The company delivered a record beat on fourth-quarter earnings on Jan. 25, and since then the stock has been buoyed by positive sentiments. American Airlines reported a 190% surprise on EPS and a 0.32% surprise on estimated revenue for the fourth-quarter of 2023.

Further, market sentiment on the stock has been bolstered by analyst ratings and price target upgrades, post earnings. The consensus analyst rating on the stock currently stands at a Buy. The majority of recent analyst reviews have assigned a price target between $20-$22 to the stock.

Also Read: American Airlines To Rally Around 42%? Here Are 10 Top Analyst Forecasts For Tuesday

American Airlines Stock – Golden Cross

The Golden Cross validates market sentiment on the stock. The stock’s simple moving averages confirm a technical signal. The 50-day simple moving average (SMA) (yellow line in chart above) just flew over the 200-day SMA (blue line in chart above). This occurrence suggests a potential reversal of the previous downtrend and could signal the beginning of a new bullish phase for the stock.

Factors such as airline industry recovery after the COVID-19 pandemic, cost-cutting measures implemented to dial in efficiency, and positive economic indicators, should help the stock fly higher.

Onward & Upward?

For investors, the Golden Cross in American Airlines stock presents an opportunity. The bullish signal suggests that the stock could experience a sustained upward trend, making it an attractive option for those seeking capital appreciation. However, investors should exercise caution and consider other fundamental and macroeconomic factors that could influence the stock’s performance.

As the airline industry continues its recovery, the Golden Cross may act as a catalyst for American Airlines, ushering in a new phase of positive price action for the stock.

Read Next: Airlines Find Powerful New Revenue Stream: Carry-On Baggage

Photo: Shutterstock