American Airlines (AAL): Watch for a potential breakout

Shares of the world’s largest airline by passenger capacity American Airlines (NASDAQ: AAL) closed above $17 last week and the stock jumped almost 25% so far this month. During the last week, the stock gained more than 10% after the company revealed that it expects its adjusted profits for the fourth quarter to be in the range of $1.12 and $1.17 per share, nearly double its previous prediction of 50 cents to 70 cents per share.

The Airline group is scheduled to report its fourth-quarter earnings on Thursday, January 26, before the market opens. In the third quarter, the company posted a record quarterly revenue of $13.5 billion in the third quarter and the net income was $483 million. The airline expects its fourth-quarter total revenue to be 11-13 percent higher versus the fourth quarter of 2019.

Check out the technical outlook of $AAL here -