Sitting on support, let's hope it holds...Air Canada has been in a down trend since last November and dropped outside of the trend lines last week to close the week at $2.48 which is right on a support line. Indicators are clearly oversold at this point in time and it might be ready for a rebound. Watch this one closely this week, it might surprise us with a move to the upper trend line.
What would trigger an entry here is a cross back into the trend channel on good volume. Any failure of the support line and it's game over as the next support is at $2.15. I have set and alert in QuoteTracker to notify me when the share price crosses the lower trend channel on an upwards movement. If you look at the steep drop in the Slow Stochastic indicator, this may indicate we need a rest period before it makes a turn upwards, and by the chart, we still have about a week to go before it reaches the apex of the support line and the down trend line. Once this starts to move upwards, I would expect it to take a week or two for it to hit the top trend line. Right now that seems to be around $3.08 but with time, that target will get lower. Possibly the 50 SMA line as a test here?
See chart and other weekly picks here;
https://us1.campaign-archive2.com/?u=4d6d491aea8e01d93d8a1f390&id=92901ca87c#AC.B
Cheers!