- American Airlines Group Inc has tapped credit lines amid the coronavirus crisis.
- The stock is attempting recovery from the lows after being battered.
- The AAL stock chairs showing a double-bottom around $10 per share.
The airline industry is one of the worst-hit from the coronavirus crisis. The cancelation of flights and other travel restrictions have ground several airlines to a halt, including the large ones, which operate very few flights.
American Airlines, one of the largest in the world and a well-known brand, found itself tapping credit lines. The firm needs cash injections to remain afloat – or airborne. The US government is helping specific industries as part of its massive efforts to shore up the economy as it mandates a partial shutdown of the economy.
The US Non-Farm Payrolls report has shown a loss of 701,000 jobs, in what may only be the beginning. That may cause Washington to provide more aid to the economy.
AAL, like its peers, has seen substantial losses. The company is valued at $4.37 billion at the time of writing. The 52-week high of its shares was above $35, and now it hovers around $10.
AAL Stock Chart
Nevertheless, the AAL stock chart provides some hope for American Airlines and bargain-seekers. The graph is showing a potential bottoming out at around $10, which was first hit in early March and later in early April. Bids are coming in at that level, potentially hinting at a bottom.
The late-MArch peak of $16 is the initial upside target for AAL.
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