On surface level, American Airlines (AAL) doesn’t look particularly appetizing. Since the beginning of the year, AAL stock is down more than 15%. More recently, its trailing one-month less comes out to roughly 14%, thereby triggering a 40% Sell rating from the Barchart Technical Opinion indicator.
To make matters even worse, during the last 10 weekly candlesticks, 70% of the sessions were in the red, thereby leading to an overall downward slope across the total period. This 3-7-D (3 up, 7 down, downward slope) quantitative sequence ordinarily spells trouble. But the question isn’t so much about what the current snapshot is; rather, it’s what tends to happen after this signal flashes in the chart.
