AAL Trade on Jul 10, 2019 09:33 from Cklamb: Tradervue User Stock Trades.

AAL
Intraday Fundamentals
Shares of American Airlines Group Inc. (AAL) rallied 2.8% in premarket trading Wednesday, after the air carrier raised its second-quarter unit revenue outlook, citing higher-than-expected load factor as seat supply was below expectations. The company said it now expects total revenue per available seat mile (TRASM) to increase 3.0% to 4.0% from a year ago, up from its previous guidance range of up 1.0% to 3.0%. Meanwhile, the company said cargo revenue was lower than projections given weakness across Asian and European markets. Capacity for the quarter was about 72.3 billion available seat miles (ASM), about 1.1 billion ASM below previous guidance as a result of flight cancellations. American said it cancelled about 7,800 flights in Q2 as a result of the groundings of Boeing Co.'s (BA)737 Max 8 aircraft (http://

), with the negative impact to earnings estimated at $185 million. American has so far cancelled all 737 Max flights through Sept. 3. The stock has edged up 0.8% year to date through Tuesday, while the Dow Jones Transportation Average has climbed 12.7% and the Dow Jones Industrial Average has advanced 14.8%.
Technicals

This stock has been in a downtrend most of the year. However, recent price action suggest that it may be breaking that trendline. It could also be setting up for a shallower trendline and maybe even a trading range in this area.
There are some people that sold into the market yesterday before the news and it looks like there may some people trapped and some people that are going to take some profits. This stock may move sideways through the price discovery period.
Trading Strategy
Long at 33 if it holds in the opening with a stop at 32.85 target at 33.40
Breakout trade over 33.50 stop at 33.20 target 33.80 (ick) Move stop quickly if this trade moves right
Watch for shorts at these price targets are hit and cannot hold

Reading the tape
On the early trade, I did not see anything in that short period that convinced me to take the trade. I needed to pay better attention to the tape one the second trade. There may have been something there that would have told me not to try for the bounce.

Trade Management

Notes
• A long at 33 was the game plan “IF IT HELD” not if it broke 33.00
• Set a limit instead of chasing..especiallly this early
• VWAP bounce trade.. not in the game plan, but a trade that I believe has edge
• Powell’s testimony may have hurt this stock today after a raise in guidance