American Airlines (AAL) selling the rallies at the blue box area

Hello fellow traders. In this technical article we’re going to take a quick look at the Elliott Wave charts of American Airlines Group ( $AAL ) stock. As our members know, the stock is trading within the cycle from the 19.2 high. The stock is showing impulsive bearish sequences. We have been calling for the decline in the stock after 3 waves pull back. Our team recommended members to avoid buying AAL stock, while keep favoring the short side. In the further text we are going to explain the Elliott Wave Forecast and trading setup.

American Airlines (AAL) Elliott Wave 4  hour chart 8.30.2023

Current view suggests the stock is doing correction of the cycle from the 15.9 peak.  The price has already reached equal legs area at 14.95-15.23.  At the moment we see possibility of another marginal push up within blue box area. Proposed leg up may or may not be seen. There is already enough number of swings in place to have correction completed.  We don’t recommend buying the stock and prefer the short side from the Blue Box Area.  Once the price reaches 50 fibs against the (x) blue low, we will make short positions risk free and take the partial profits.

American Airlines (AAL) Elliott Wave 1 hour chart 09.03.2023

The stock made decline from our blue box zone 14.95-15.23 (selling zone) . Pull back reached 50 fibs against the (x) blue low. As a result members who took short trades at the blue box, now enjoying profits in a risk free positions. As far as the price stays below 14.99 we expect to see further weakness toward new lows.  We would need to see break of ((i)) black low: 14.42 to confirm next leg down is in progress.

American Airlines (AAL) Elliott Wave 1 hour chart 09.12.2023

Eventually the stock made further separation from the 14.99 and price broke below 14.42 low, confirming wave ((iii)) is in progress. The stock remains bearish against the 14.99 pivot and should ideally keep finding sellers in 3,7,11 swings.