American Airlines Group Inc. (NASDAQ:AAL) stock may be ready to rally. After finding support around the $20 level, it has broken its downtrend line.
When stocks are trending lower, the bears are in charge of the market. Their sell orders overpower the bulls. When stocks are trending higher, it’s the bulls who are in charge. Their buy orders overpower the bears.
The break of a correctly drawn trendline shows a change of this leadership.
In the case of AAL, a downtrend line has been broken. This could mean that after a long downtrend, the bulls may be taking over. A new uptrend may be forming.
The stock was up 4.2% at $20.86 at last check Wednesday.
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