Swing Trade Idea (AAL) – March 4, 2021
Our bullish trade for Thursday, March 4th is American Airlines (AAL). AAL is part of the Discretionary Sector (XLY). XLY has experienced a 4.2% decline in the last month as price continues to pullback to its 100 D MA.
AAL is on a strong bullish trend and recently pulled back to an area of support to provide a good risk/reward long entry. With a technical score of 9 (out of 10), AAL is a very strong stock that will likely move higher.
As a stop loss, if AAL were to trade below $20 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves above $2.40.
