Stock of the day: American Airlines

By Tomasz Wisniewski|

Published: October 08 2025, 07:45 GMT+0

Stock of the day: American Airlines

In today’s stock of the day, let’s take a closer look at American Airlines (AAL), where the technical picture remains decidedly bearish. The stock has been struggling for months, and the technical setup on the chart confirms that the sellers are still firmly in control. In fact, a long-term sell signal was triggered in the previous month, and there are no signs of reversal for now.

Looking back, since February, American Airlines has been locked in a consistent downtrend. The early part of the year, particularly February and March, was catastrophic for the stock, as it suffered a steep decline driven by both sector-wide weakness and company-specific headwinds. Following that heavy drop, the price entered a bullish correction phase, which was neatly contained within a red flag pattern — a classic continuation formation that appears within downtrends.

In September, this flag pattern was broken to the downside, confirming that the correction was over and that the dominant bearish trend had resumed. What makes this breakout especially significant is that it was accompanied by a bearish gap, adding further conviction to the signal. The price has remained below the lower boundary of the flag, suggesting that sellers continue to control the market structure.

As long as the price stays below the lower red trendline, the long-term sell signal remains active. The next major downside target lies on the green horizontal support, corresponding to the lows from August 2024 and  April 2025. That level will be the key test for buyers — but until it’s reached, the sentiment remains decisively negative for American Airlines.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-american-airlines

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