A huge dark pool order valued at $17 million hit AAL stock on Friday, August 16, 2019. This dark pool block order was a whopping 10% of the average daily volume in AAL stock.

Unusual dark pool order in AAL stock on Friday, August 16, 2019

The way that AAL stock responded to the order suggests that this was a $17 million sell order coming off the dark pool.

I would not be in a rush to get into AAL stock because the daily chart looks like a good swing trade setup.

AAL stock is oversold and looks like a compelling swing trade long entry

American Airlines has other issues going on with 737 Max cancellations and labor unions.

On August 12, 2019, we got the news that a U.S. federal court issued a permanent injunction against American Airlines’ mechanics union, which the company had accused of illegal slowdowns it claimed harmed its operations during the peak summer travel season, Reuters reports. The judgment, which was issued in the United States District Court for the Northern District of Texas, made permanent an earlier order against the TWU-IAM union demanding the workers cease from interfering in the carrier’s operations, the report says.

The Federal Aviation Administration reported Thursday that American Airlines denied seats to 69,924 passengers voluntarily in the first six months of 2019, up from 28,409 in the same period last year, while involuntarily denying boarding to 5,022 passengers, up from 678 in the same period last year.

I would add AAL stock to a watch list but would not be in a hurry to jump into the stock when there’s large sell orders coming of the dark pool.

Remember these guys on CNBC back in April 2019? You would have gotten destroyed had you interpreted this to mean that the market was getting bullish on AAL stock:

Disclosure: I do not hold any position in AAL stock.

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