Long LUV against recent low
This 120m chart of LUV shows price action since the stock's December 2017 high. Southwest spent the entirety of 2018 in what appears to be a "complex correction" in Elliott Wave terms. The corrective sequence, labeled W-X-Y, is comprised of two simple A-B-C corrections connected by an X-Wave. Price was largely contained within a parallel trend channel until the final throw-over of Wave C/Y on diverging momentum. The subsequent rally off of 44 has broken above the prior swing high at Wave B as well as the midpoint of the trend channel, suggesting that the correction is complete.
We're looking for LUV to form a higher-low at current Fibonacci support levels before rallying back up to and through the 60 level. The ongoing sequence can be labeled as either a three wave correction (A-B-C) or the start of a new bullish impulse (1-2-3). Either way, we expect higher prices in coming weeks. This pattern could also be labeled an upside-down head-and-shoulders in non-Elliott Wave terms. Initiating a long position at market against the 44 low. Immediate price target is 60 with extensions to 65 and 72.50.
We're looking for LUV to form a higher-low at current Fibonacci support levels before rallying back up to and through the 60 level. The ongoing sequence can be labeled as either a three wave correction (A-B-C) or the start of a new bullish impulse (1-2-3). Either way, we expect higher prices in coming weeks. This pattern could also be labeled an upside-down head-and-shoulders in non-Elliott Wave terms. Initiating a long position at market against the 44 low. Immediate price target is 60 with extensions to 65 and 72.50.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.