AAL Elliott Wave View: Correcting 2013 IPO Lows
|American Airlines Group inc ticker symbol: AAL is an American airline holding company stationed in Forth worth Texas formed in December 2013. Since the IPO low from December 2013, the stock rallied in 3 waves corrective sequence i.e as double three structure & ended the Grand Super Cycle wave ((w)) at 1/16/2018 peak ( $59.08). Down from there, the stock is doing a bigger 3 wave pullback to correct the Grand Super Degree cycle in wave ((x)) as zigzag structure.
According to Elliott wave theory, Zigzag is a 3 wave structure having an internal subdivision of (5-3-5) swing sequence. The internal oscillations are labeled as A, B, C where A = 5 waves, B = 3 waves and C = 5 waves. This means that A and C can be impulsive or diagonal waves. The A and C waves must meet all the conditions of wave structure 5, such as: having an RSI divergence between wave subdivisions, ideal Fibonacci extensions, ideal retracements etc.
AAL Weekly Elliott Wave Chart
The pullback from 1/16/2018 peak ( $59.08) is taking a form of Elliott Wave zigzag structure. Where Super Cycle degree wave (a) ended at $35.64 low. Wave (b) bounce ended at $43.88 high. And wave (c) remain in progress towards $20.44-$14.93 100%-123.6% Fibonacci extension area of (a)-(b) blue box extreme area. Before it ends the cycle from 1/16/2018 peak in Grand Super Cycle degree wave ((x)) pullback. Then, the stock is expected to resume the upside or should produce a bigger 3 wave bounce at least.
AAL Daily Elliott Wave Chart
AAL in Daily cycle, Near-term bounces are expected to fail below 43.91 high for a move towards $20.44-$14.93 100%-123.6% Fibonacci extension area to happen.
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