Southwest Airlines Looks Like It Wants to Breakaway
Selling climax and capitulation occurred during period from Mar-2020 thru early Aug-2020. Covid-19 infection rates were shifting into acceleration mode and an effective vaccine had yet to be developed/approved. Economic conditions were deteriorating and the airline industry was barely "hanging by a thread". So what's different? Global economic recovery and loosening of TSA restrictions and CDC guidelines are a relief to both businesses and consumers.
That's the fundamental story undergirding this price action in LUV. Technically speaking, LUV is undergoing a consolidation phase which began @ 3 months ago. This weekly chart shows a classic cup-with-handle pattern and typically is followed by a breakout to new highs or, at the very least, a high probability to test prior resistance levels @ 65-67 price levels.
This creates a short-term trading opportunity or potential for an extended run for more patient investors who subscribe to the economic recovery investment thesis.
Signing off....
J Clinton Hill
TechnicallyMacro.com
That's the fundamental story undergirding this price action in LUV. Technically speaking, LUV is undergoing a consolidation phase which began @ 3 months ago. This weekly chart shows a classic cup-with-handle pattern and typically is followed by a breakout to new highs or, at the very least, a high probability to test prior resistance levels @ 65-67 price levels.
This creates a short-term trading opportunity or potential for an extended run for more patient investors who subscribe to the economic recovery investment thesis.
Signing off....
J Clinton Hill
TechnicallyMacro.com