AC Stock Price Prediction: Air Canada Rises Before March Earnings

• AC stock price escapes a declining streak and surges for three trading sessions.
• Trading volume shows buyers entering the market.
• AC stock price rises prior to the March earnings report, scheduled for May.

AC stock price continues to surge for three consecutive trading sessions, after many analysts revise their ratings for the positive. Air Canada is rated from negative to positive under the influence of an improving environment for travel demand. The rally is an extension to the previous week’s short rally, due to its plan to deploy hybrid or electric planes. The aviation company along with several others have said to invest in electric planes. The road-EVs are facing issues with the battery management, and a similar hindrance can be experienced by the EV aviation sector. 

Solution for Air Canada in Batteries

Air Canada, in the plans of adopting hybrid models of electric planes, can also plan for a battery-swapping system to recycle and upcycle Lithium-ion batteries (LIB). The battery-swapping model is being adopted by several EV manufacturers including NIO. The mining regulations for Lithium are getting stricter due to it being a scarce resource, and an alternative way to support the EV industry is the need of the hour. 

The integration of hybrid models can help in smoother transition from fuel consuming vehicles to fully-electric planes. Meanwhile, a strategic blueprint to map out this transfer can help list out the loopholes, and curbing those will provide Air Canada a competitive advantage. 

AC Stock Price Analysis

AC stock price escaped the declining streak and rallied for three consecutive trading sessions. The rally is projected to extend, tearing the $20 price level. The trading volume turns buyer-dominant signaling a positive outlook being established in the market. The rising price may soon break out of the 0.236 level of Fib retracement. The uptrend may face resistance near $20.55, and if breached, can aim for a level beyond $25.

The RSI rises and tries to reach the upper half region, indicating ascending buyer dominance in the market. The MACD forms a positive crossover to record ascending buyer bars. The bullish indicators suggest the price may form a steady rise spanning over a few weeks till the transition to hybrid aviation is successful. 

Conclusion

AC stock price may establish an extended rally continuing for several weeks. The aviation company plans to transition from fuel plans to electric plans along with several other companies. The step to help in sustainable growth can be a rocky ride, but once successful, Air Canada can gain a solid competitive advantage. The holders of AC stock can rely on the support near $18.00.

Support levels: $18.00 and $16.05

Resistance levels: $20.55 and $23.15

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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