American Airlines Stock Chart Analysis: Upside Target

Shares of American Airlines (AAL) are surging again today, hitting a new 52 week high at $26.09. While some investors are chasing American Airlines, others are scoping out the upside target, contemplating a short trade. Based on American Airlines stock chart analysis, there is an obvious max upside target of $27.80. This is a major gap fill and the level which the Covid-19 decline began. In other words, it would be a 100% retrace of the collapse in American Airlines.

While some investors are not too savvy and believe that the reopening story justifies this, smarter investors understand that the amount of debt issued during the pandemic, makes the pre-crisis stock price almost double that level. That means it is extremely expensive. Remember, American Airlines will have to service all the debt with huge payments. This will cut down on earnings for years to come. As a swing trader, I will look to short the $27.80 level on American Airlines. 

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