A support level and a down trending resistance line has formed in the chart of Azul SA (NYSE:AZUL). These two lines have created a descending triable pattern, which is a bearish pattern. The stock is expected to fall through the support level. Read more to learn how to take advantage of this trading opportunity.Azul SA (AZUL) is primarily involved in air transportation services. The company offers airline passenger and cargo services. It operates daily flights departing from Fort Lauderdale and Orlando and also schedules flights to more than 100 destinations through Brazil.
The company has been benefiting from a recovery in air-travel demand. This is especially true on the domestic front. AZUL’s traffic in August surged 176.9% year-over-year. It is also up 6.5% from its August 2019 level. In addition, an increase in e-commerce demand is boosting the company’s cargo business unit.
As of the most recent quarter, the company had $814 million in cash, up from $429 million in the previous quarter, and well above its short-term debt level of $47 million. However, analysts forecast earnings to fall 151.4% year-over-year in the third quarter.