Airline stocks continue to tank as oil remains at multi-year highs. Shares of American Airlines (NASDAQ:AAL) are trading near $34.50, down from a 52-week high of near $58. The fall in the last three weeks has accelerated as oil has spiked sharply.
Support And Buy
And while average investors and funds run from airline stocks, American has a major support and strong buy level emerging at the $33 level. Smart traders are licking their lips at this level, which is a multi-factor level with two chart signals pointing to major support. Add in an extreme oversold stochastics, RSI and other factors and we have the makings of a major bounce and buy.