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AAL stock price slid 4.08% intraday on Monday and currently trades at $12.24. - 2
American Airlines Group (NASDAQ: AAL) has been in a free fall since mid-July 2023. - 2
The daily chart shows an accumulation of over a week near the recent swing swing low.
American Airlines Group (NASDAQ: AAL) stock price has been in a free fall since the middle of July and has dropped more than 35% in the period. The stock price has been continuously witnessing selloff from the upper levels and has dropped directly from a high of $19.08 to a current of $12.24.
Furthermore, the price trend analysis elaborates that the AAL stock price experienced a bullish rally in the last quarter after bottoming out from a low of $13. The stock price gained almost 45% to reach a high of $19 by the end of the quarter.
However, the current quarter observed a free fall with no major pullbacks. The stock price declined, wiping out the gains in the current quarter. American Airlines Group is a holding company engaging in the operation of a network carrier.
Currently, the AAL stock price is consolidating near the lows. The breakdown below the $12 level might trigger a selloff and the price may decline to lower support levels. Moreover, the breakout to the upside might bring some short-term optimistic opportunities and the price may try to recover.
AAL stock’s option-chain analysis states that the current implied volatility in the market of AAL is 50.84% with an increment of 3.27% in the last trading session. The at-the-money strike price has 1919 open contracts on the PUT side and 188 open contracts on the CALL side; indicating the dominance of buyers at the current level.
AAL Stock Price Forecast For 2023
The average analyst price target for AAL stock in 2023 is $16.38, which represents a potential upside of 33.78% from the current price. However, there is a wide range of analyst price targets between $9.00 to $29.00.
The most optimistic analysts believe that AAL stock could reach $29 in 2023 indicating an upside potential of over 136.93%. If the global airline industry grows strongly, American Airlines Group can manage itself successfully and a rise in stock price can be seen.
AAL Stock Price Showed Sharp Selling Below Key EMAs
The overall technical indicators including the RSI and MACD signal a 88% “sell” with the strongest short-term outlook on maintaining the current direction.
Conclusion
AAL stock price has shown a free fall since mid-July and has declined wiping out all the gains in the last quarter. The stock price currently trades at $12.24 and tries to sustain near the recent swing low. The breakdown below the low might trigger a selloff and the price might slide to a 3-year low price. The technical indicators show weakness over the daily chart and support the decline.
Technical Levels
- Support Levels: $11.88 and $11.01
- Resistance Levels: $13.05 and $14.56
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/10/10/aal-stock-price-in-free-fall-can-aal-price-hit-3-year-low/