As predicted, AA dropped today due to the dark candle yesterday.
Today’s candle is another bearish candle with a long upper wick. The high matched yesterday’s high, but the candle closed lower than yesterday’s low. This signals that the bears won today.
However, the continuation of this bear trend is uncertain as there are bullish indicators too.
BULL CASE:
Stochastics moving upwards
Strong Support seen at $13.30
Dow Jones seems like it will continue its rally again
Good economic readings today
Tomorrow’s unemployment figure will be the deciding factor of AA’s direction.
I predict that AA will test its support at $13.30 and it could bounce strongly if the economic reports are good tomorrow.
NEUTRAL on AA in the short run.
LONG RUN: LONG AA
Looking for an entry point, buy below $13.65 but there is no need to rush to buy. If AA breaks support at $13.30, this indicates the continuation of the bear trend and it may go to $11.80
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