American Airlines shares gain the most in ten weeks on Wednesday, company revises up passenger unit revenue forecast

American Airlines Group (AAL) was the latest carrier to revise up its passenger unit revenue forecast during the past week, which sent its shares up by more than 4%.

American Airlines shares closed higher for the eighth time in the past ten trading sessions on Wednesday. It has also been the sharpest daily surge since May 2nd. The stock went up 4.24% ($2.19) to $53.80, after touching an intraday high at $53.83, or a price level not seen since March 30th 2015 ($53.84). In the week ended on July 9th the shares of the transportation company added 5.39% to their market value compared to a week ago, which marked a second consecutive period of gains and also the best performance since the week ended on May 28th. The stock has extended its advance to 6.92% so far during the current month, following a 3.95% increase in June. The latter has been a third consecutive month of gains. For the entire past year, the shares of the NASDAQ-listed carrier added 10.25%.

According to American Airlines, passenger unit revenue, a key indicator comparing sales to flight capacity, is projected to increase at a rate of 5% to 6% during the second quarter. In comparison, the companys previous forecast had pointed to an increase of 3.5% to 5.5%.

“AAL currently faces the most difficult yr/yr RASM comp in our coverage universe, a topic thats been a significant focus of investor inquiry in recent weeks”, JPMorgan analyst Jamie Baker was quoted as saying by Reuters. “Given the heft of todays guide, we expect these concerns to significantly moderate.”

According to CNN Money, the 17 analysts, offering 12-month forecasts regarding American Airlines’ stock price, have a median target of $52.00, with a high estimate of $95.00 and a low estimate of $42.00. The median estimate is a 3.35% decrease compared to the closing price of $53.80 on July 12th.

The same media also reported that 11 out of 19 surveyed investment analysts had rated American Airlines’ stock as “Hold”, while 6 – as “Buy”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the American Airlines stock are presented as follows:

R1 – $53.93
R2 – $54.05
R3 (Range Resistance – Sell) – $54.18
R4 (Long Breakout) – $54.56
R5 (Breakout Target 1) – $55.00
R6 (Breakout Target 2) – $55.22

S1 – $53.67
S2 – $53.55
S3 (Range Support – Buy) – $53.42
S4 (Short Breakout) – $53.04
S5 (Breakout Target 1) – $52.60
S6 (Breakout Target 2) – $52.38

By using the traditional method of calculation, the weekly levels of importance for American Airlines Group (AAL) are presented as follows:

Central Pivot Point – $52.20
R1 – $54.21
R2 – $55.40
R3 – $57.41
R4 – $59.43

S1 – $51.01
S2 – $49.00
S3 – $47.81
S4 – $46.63