Short Term Elliott Wave View in America Airlines (AAL) suggests rally from 10.31.2023 low is in progress as a 5 waves impulse structure. Up from 10.31.2023 low, wave 1 ended at 12.77 and pullback in wave 2 ended at 11.95. The stock then resumed higher in wave 3. Up from wave 2, wave ((i)) ended at 12.56 and dips in wave ((ii)) ended at 12.08. The stock resumed higher in wave ((iii)) towards 14.18 and pullback in wave ((iv)) ended at 13.64. Wave ((v)) higher ended at 14.75 which completed wave 3.
Pullback in wave 4 is currently in progress as a double three Elliott Wave structure. Down from wave 3, wave ((w)) ended at 13.95 with internal structure as another double three in lesser degree. Wave ((x)) rally ended at 14.46. Final leg wave ((y)) is currently in progress as a zigzag structure. Down from wave ((x)), wave (a) ended at 13.91. Expect rally in wave (b) to fail for another leg lower wave (c) to complete wave ((y)) of 4. Potential support area comes at 100% – 161.8% Fibonacci extension of wave ((w)). This area is shown as a blue box area on the chart at 13.16 – 13.66. From this area, expect buyers to appear and the stock to either extend higher or rally in 3 waves at least.
