American Airlines (#AMERICAN_A) weekly uptrend opportunity based On 1.00 Lot Calculation:
- American Airlines Group Inc. is one of the largest airlines in the world. It is based in the United States and operates globally in over 60 countries. Prior to the pandemic, American Airlines carried 200 million passengers per year.
- EVENT: A new stimulus package worth around 1.9 trillion dollars to enter the US economy in early March (latest March 14). According to one study conducted by Deutsche Bank, the US stock market could absorb around 170 billion dollars as American citizens will be given additional stimulus checks worth $1,400.
- EVENT: U.S. AIRLINES TO RECEIVE ADDITIONAL HELP OF $15 BILLION. The U.S. Airlines are expected to receive additional help of $15 billion dollars as part of Biden’s Covid-19 relief bill worth 1.9 trillion dollars. American Airlines is part of this programme and it could be expected to receive between 2 and 4 billion dollars.
- COVID-19 VACCINATION PROCESS CONTINUES: Many countries across the world, including the U.S., have continued to vaccinate their population and with high efficacy rates provided by Pfizer and Moderna, the economies continued to hope they will re-open more fully during the rest of the year. Meanwhile, the new daily cases in the U.S. remained below the mark of 100,000, which is additional, good news for the airline industry. American Airlines will benefit from a pick-up in both business and recreational travel as the Coronavirus becomes more and more contained.
- HOLIDAY BOOKINGS RISE: Airlines in the US said that customers are finally booking flights one to two months in advance, instead of days or weeks ahead. In the U.K., airline companies also reported a jump in bookings for this summer.
- ANALYST OPINION: Deutsche Bank raised their target price to $23 from $20 a share on February 22, 2021.
- STOCK PRICE ACTION: American Airlines stock remains around 30% below the pre-Pandemic price of $30 as it traded around the mark of $20 in the week February 22-26.
American Airlines (#AMERICAN_A), February 26, 2021
Current Price: 20.20
|
American Airlines |
Weekly |
|
Trend direction |
|
|
24.85 |
|
|
23.45 |
|
|
22.25 |
|
|
18.25 |
|
|
17.00 |
|
|
15.75 |
Example of calculation base on weekly trend direction for 1.00 Lot*
|
American Airlines |
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|
Pivot Points |
||||||
|
Profit or loss in $ |
4,650.00 |
3,250.00 |
2,050.00 |
-1,950.00 |
-3,200.00 |
-4,450.00 |
|
Profit or loss in €** |
3,835.65 |
2,680.83 |
1,690.99 |
-1,608.50 |
-2,639.59 |
-3,670.68 |
|
Profit or loss in £** |
3,329.99 |
2,327.41 |
1,468.06 |
-1,396.45 |
-2,291.61 |
-3,186.77 |
|
Profit or loss in C$** |
5,872.95 |
4,104.75 |
2,589.15 |
-2,462.85 |
-4,041.60 |
-5,620.35 |
* 1.00 lot is equivalent of 1000 units
** Calculations for exchange rate used as of 14:07 a.m. (GMT) 26/02/2021
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more details