American Airlines (AAL) Loses -14.02% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - American Airlines (AAL) is experiencing significant selling pressure, with a 14% decline over the past four weeks, but is now positioned for a potential trend reversal as it is in oversold territory and analysts expect better earnings than previously predicted [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is used to identify oversold stocks, with a reading below 30 indicating oversold conditions [2]. - AAL's current RSI reading is 20.75, suggesting that the heavy selling may be exhausting itself and a trend reversal could occur soon [5]. Group 2: Fundamental Indicators - There is a strong consensus among analysts covering AAL, with earnings estimates for the current year increasing by 0.9% over the last 30 days, indicating potential price appreciation [6]. - AAL holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the stock's potential turnaround [7].