All the gain we saw in the powerful rise in early June is now gone. AC has been volatile in post-COVID trading & hasn't recovered much compared to markets. While shutdowns worldwide & low tourism have generally trashed the industry, AC is still operating their aircraft domestically and increasingly abroad, mitigating some of the heavy AOG costs that all carriers are suffering from right now.
Air Canada isn't going anywhere but it might take a while for airlines in general to recover - we may see more downside (red arrow) if markets in general suffer from wave 2/re-shutdown fears, or potentially a smaller rally sooner rather than later. Price movements are still big enough for swing trading & AC has shown some small rally patterns (green) with V-shaped dips (blue).
Watch for a break of the local RSI support, MACD divergence in either direction, or an increase in volume to point towards the next move.
In any case I expect a local low within the first week or so of July and an eventual long-term recovery that is definitely worth buying into even now.
For educational purposes only, not investment advice
Air Canada isn't going anywhere but it might take a while for airlines in general to recover - we may see more downside (red arrow) if markets in general suffer from wave 2/re-shutdown fears, or potentially a smaller rally sooner rather than later. Price movements are still big enough for swing trading & AC has shown some small rally patterns (green) with V-shaped dips (blue).
Watch for a break of the local RSI support, MACD divergence in either direction, or an increase in volume to point towards the next move.
In any case I expect a local low within the first week or so of July and an eventual long-term recovery that is definitely worth buying into even now.
For educational purposes only, not investment advice