"Airtran Holdings (AAI) Technical Analysis

Today we'll analyze the Stock AAI for online market trading,
Technical indicators to notice:
1- Last bearish trend was from 6.83$ (04/01/08) to 4.13$ (04/11/08) a 2.70$ move
2- The current bullish trend started from 4.13$ at 04/11/08 and is currently trading at 4.89$.

3- The stock current support level is at 4.77 which is the 23.60% fibonacci retracement of the last 2.70$ move.
4- The stock current resistance level is at 5.16 which is the 38.20% fibonacci retracement of the last 2.70$ move.
5- According to ADX, the trend is currently strong bearish, which is getting stronger.furthermore, the ADX location between DMI+ and DMI- is hinting on a strong move ahead. the stock is very volatile at this point.
Short term chart patterns :

6- The Stock formed Double Top Pattern at 6.83.
Mid term chart patterns :

7- The Stock was resisted by a resistance line, identified by two points: 6.85 and 9.06, and is currently resisting at 6.01378.
Long term chart patterns :

8- The Stock was resisted by a resistance line, identified by two points: 6.85 and 9.06, and is currently resisting at 6.01378.

Conclusion:
AAI was trading in a strong bearish wave, which is becoming stronger .
Technical indicators and chart patterns show highly volatile movements favoriting bearish direction,
recommend hedging long positions or entering short position or bearish spread options strategy , because of the high expected future volatility, consider constructing symmetrical options strategies for buying volatility through strangles or straddles.
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Resistance Levels: 5.16, 5.48, 5.80, 6.01, 6.76, 6.82, 6.83, 7.56, 8.49, 8.50, 10.44, 10.48, 11.60, 11.90, 12.57.
Support Levels: 4.77, 4.71, 4.60, 4.51, 4.42, 4.13,.