Are Airline Stocks Ready for Takeoff? Let’s look at $JETS and $AAL – September 20, 2021
JETS AAL
This is Scott with your Chart of the Day. I want to take a look at the Jets ETF ( NYSEARCA: JETS ) and show you an airline that I think might be ready for takeoff. As you know the Jets ETF ( NYSEARCA: JETS ) hasn’t really been a rewarding trade. Since the middle of March, it kind of started a little bit of a downtrend, went sideways.
In June it broke below the 50-day moving average and has been unable to get above. You can see how it just keeps bumping up against this orange line, that’s the 8-day exponential period moving average. In the middle of July, we established a low, and ever since then, we have had progressively higher lows. We had a higher low here in August and now in September, we have another higher low, right around that $22.00 level.
Now, I think that there was some news out about the airlines today. And it’s pretty notable because, as you know, the market has been quite weak but Jets ETF ( NYSEARCA: JETS ) closed near the highs and did it on a good pickup in volume. So that makes me want to take a look inside the Jets ETF ( NYSEARCA: JETS ) and take a look for some airline stocks that might be ready for takeoff.
One of those is American Airlines ( NASDAQ: AAL ). AAL ( NASDAQ: AAL ), again, really strong day, higher than average volume and it’s right around the cluster of moving averages. You can see we have the 8-day, the orange line, the gray line is the 21-day, 50-day is the red line, and the 200-day is the blue line, so we are right around a cluster of moving averages and I love when the moving averages are stacked like this.
What I want to see from American Airlines ( NASDAQ: AAL ) is a move above this clearly defined level of resistance, right around that $20.60 range. I want to see American Airlines ( NASDAQ: AAL ) get above and stay above 20.60 and do it on more volume to show that the buyers are pushing the stock higher and potentially giving us a daily trend change on this chart. So that’s what we will be looking for over at stockmarketmentor.com.
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