Is AMR about to go into a Dive ?
It has been reported that Japan Airlines may terminate their deal with American [ AMR ] and fly with Delta Airlines.
If JAL chooses Delta then American would end up losing code-sharing and feeder traffic from Japan Airlines. More important will be the loss of passengers and therefore revenue from its Asian network.
The Daily Chart of AMR shows that an ascending contracting wedge at the top of a major ascending channel [ mAC ] began to form in early December. It could also be looked upon as a bearish ascending Flag with a Flagpole some 2 points in height. Should this pattern be correct the stock price will take a "dive". The downside target, based on the pattern, would be 5.85. The lower boundary of the mAC is at 5.97±. In the coming days AMR may run into some severe turbulence.
