AC stock price surged through three consecutive trading sessions, after many analysts revised their ratings to positive. Air Canada rating went from negative to positive under the influence of an improving environment for travel demand. The rally is an extension to the previous week’s short rally, due to its plan to deploy hybrid or electric planes. The aviation company along with several others have said to invest in electric planes.
Solution for Air Canada in Batteries
Air Canada is planning to adopt hybrid models of electric planes, and could plan a battery-swapping system to recycle and upcycle Lithium-ion batteries (LIB). The battery-swapping model is being adopted by several EV manufacturers including NIO. The mining regulations for Lithium are getting stricter due to it being a scarce resource, and an alternative way to support the EV industry is the need of the hour.
The integration of hybrid models can help in smoother transition from fuel consuming vehicles to fully-electric planes. Meanwhile, a strategic blueprint to map out this transfer can address the loopholes, and curbing those will provide Air Canada a competitive advantage.
AC Stock Price Analysis
AC stock price escaped the declining streak and rallied for three consecutive trading sessions. The rally is projected to extend, tearing the $20 price level. The trading volume turned buyer-dominant signaling a positive outlook being established in the market. The rising price may soon break out of the 0.236 level of Fib retracement. The uptrend may face resistance near $20.55, and if breached, could aim for a level beyond $25.
The RSI rises and tries to reach the upper half region, indicating ascending buyer dominance in the market. The MACD forms a positive crossover to record ascending buyer bars. The bullish indicators suggest the price pattern may show a steady rise spanning a few weeks till the transition to hybrid aviation is successful.
Conclusion
AC stock price may establish an extended rally continuing for several weeks. The aviation company plans to transition from fuel planes to electric plan. The step to help in sustainable growth can be a rocky ride, but once successful, Air Canada can gain a solid competitive advantage. The holders of AC stock can rely on the support near $18.00.
Support levels: $18.00 and $16.05
Resistance levels: $20.55 and $23.15
