Don't Ignore This Chart!

Airline Index Bounces of Key Retracement and Breaks Trendline

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Is this bounce for real or just another dead-cat bounce? The Amex Airline Index ($XAL) hit the 62% retracement area in mid April and surged above the wedge trendline on Tuesday. Also notice that MACD formed a bullish divergence and moved above its signal line. Things are looking up for the airlines.

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Announcement from the Author

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Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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