Oil priced have dropped well off their highs. Furthermore, after reviewing the 2-month chart of AMR, we can see an obvious down trend. But in the last week, it appears that the stock has broken this trend.
There is a double bottom and what appears to be a new uptrend, confirmed by price support on heavy volume. I would guess that AMR will break-out soon, if fundamentals continue to improve with oil coming off it's highs.
If this is a true recovery phase, I expect a large amount of accumulation as we progress into Spring / Early Summer. This is a great stock with $5 billion worth of liquidity. The balance sheet has shown improvement. And it has suffered severely. Don't forget they hedge jet fuel prices and are capped at about $79 a barrel.
$9.35 (03/21/08)
