Many of the major airline stocks topped out in early July. Leading carriers like Delta Air Lines (NYSE:DAL), American Airlines (NASDAQ:AAL), United Continental (NYSE:UAL) and Southwest Airlines (NYSE:LUV) have been falling lower since that peak. And the airline sector's fall has happened despite the very low price of fuel. Traders should now watch these stocks closely as they come into very attractive support levels on the charts.
American Support
One airline that is coming into a major support level is American Airlines, which peaked on July 13 at $54.48 and is today trading at $44.45 a share. I will be watching the $42 area very closely for a long, buy-side trade. This price level was defended in May 2017 and will likely be defended again when it is retested. Many other airline stocks are also looking attractive so stay tuned..