7.30.17 | AAL | Falling Wedge Break Out

AAL looks like it has slightly diverged from its bullish breakout of a falling wedge. None the less Friday did close with a large bullish candle after a huge gap down divergent to the falling wedge pattern. Price has been trading with the support of accelerating fan lines and may have an overall target back to the lower support line. However oil this week looks like it is going to retrace out of a Rising Wedge which is going to be bullish for the Airlines. Also signaling a bullish retracement is the Stochastic Oscillator which has crossed over and trending out of Oversold as well as the Sentiment Zone Oscillator which has also bounced from Oversold and trending to break resistance of the 0 line. Confirmation of a breakout will be a bullish close on Monday, and increasing volume which is already on the rise as seen with the dashed trendline. The first target is drawn on the 31.8% line at about $31.50 | Place your stop just outside daily volatility or use the 8 EMA and place it just outside of that.

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Trade Idea VOIDED on 8.1.17