Entry Point AIR CANADA

4 déc. 2017

I called the reversal about 3 weeks ago and I think that AC is trying to prove that this was just a temporary sell-off. The stock has fallen from highs of $28.50 to $21 and is now trading at $24.93. Fundamentally AC is strong with a good position in the Canadian market. It is showing on the chart attached that it is hovering around support zones and will probably continue to keep trickling upwards until it has a reason for a bigger breakout to new highs. RSI is showing that the stock is not overbought nor oversold, but it's hovering in the 45-55 range which could indicate this is building up a base. Furthermore, the 50, 100, and 200 moving averages are converging which could show that this is pent up and ready for a breakout.