America Airlines (AAL) has shown signs of a potential rally, as indicated by the Short Term Elliott Wave View. Analyzing the movement from the low on 10.31.2023, it appears that a 5-wave impulse structure is currently in progress. This suggests that the stock has the potential to continue its upward trajectory.
Following the low on 10.31.2023, wave 1 concluded at 12.77, leading to a pullback in wave 2 that ended at 11.95. Subsequently, wave 3 began, with wave ((i)) ending at 12.56 and wave ((ii)) experiencing dips and concluding at 12.08. The stock then surged higher in wave ((iii)) and reached 14.18. A pullback in wave ((iv)) followed, ending at 13.64, before wave ((v)) pushed the stock to its highest point at 14.75. This completion of wave 3 sets the stage for the ongoing wave 4.
Wave 4 is currently unfolding as a double three Elliott Wave structure. The descent from wave 3 saw wave ((w)) conclude at 13.95. Interestingly, wave ((w)) also exhibited a double three structure in a lesser degree. The subsequent rally in wave ((x)) reached a peak at 14.46. Currently, the final leg wave ((y)) is in progress, taking the form of a zigzag structure.
Looking ahead, the expectation is for wave (b) to rally following wave (a)’s conclusion at 13.91. However, this rally is predicted to be short-lived, eventually resulting in another leg lower (wave (c)) that completes wave ((y)) of 4. The anticipated support area lies within the range of 13.16 to 13.66, which represents a 100% to 161.8% Fibonacci extension of wave ((w)). This region is visualized as a blue box on the chart.
From this projected support area, it is anticipated that buyers will emerge and lend support to the stock. The stock may then either extend higher or experience a rally in at least 3 waves.
The Short Term Elliott Wave View suggests the possibility of a rally in America Airlines (AAL) following a completed 5-wave impulse structure. However, the ongoing wave 4, currently forming as a double three Elliott Wave structure, may experience a temporary setback before potential support emerges. Investors and traders alike should closely monitor the stock’s movement within the projected support area, as it may serve as a crucial turning point for AAL’s future trajectory.
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