American Airlines share price continues to trade at depressed levels, with the price capped below the $10.00 level.
American Airlines stock analysis shows that sellers could soon move the share value of the major US airlines to a fresh multi-year price low.
American Airlines US medium-term price trend
Traders continue to sell any rallies in the American Airlines share price as the fundamentals towards the airlines industry still remain exceptionally bearish.
AAL stock analysis on the daily time frame is showing that the airline's share price could decline to a new multi-year, and all-time low.
The daily time frame shows that the recent decline below the July 2016 trading low, around $24.80 level, invalidated a bullish reversal pattern.
According to the size of the invalidated inverted head-and-shoulders pattern, the American Airlines share price could decline below the stock’s all-time trading low, which was created in September 2008.
With this in mind, American Airlines could actually decline below the $1.00 level, after trading as high as $30.00 at the start of this year.
American Airlines short-term price trend
AAL stock analysis shows that the short-term trend remains bearish while the price trades below the $10.25 resistance level.
The four-hour time frame currently shows that the price is trapped within a falling wedge pattern.
According to the size of the bullish falling wedge pattern, a directional move of $6.00 will take place once the price breaks from the wedge pattern.
If bulls fail to rally the price above the top of the wedge, around the $11.00 level, then a price decline towards the bottom of the wedge, around the $6.00 level, could take place.
American Airlines US technical summary
AAL stock analysis indicates that more medium-term downside remains possible. Technical analysis suggests the share price could fall to a new all-time low.