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Airlines

ALK Double H&S PatternAfter forming a perfect Head & Shoulders pattern, a larger Head & Shoulders is taking shape. The already completed H&S pattern is pretty much a picture perfect formation. - Left shoulder shows strong volume on the upside and lower volume on down days - The head shows increased volume on positive days at the beginning, but volume fades as ALK makes higher highs. THIS IS A TELL-TALE SIGN WE REACHED A TOP - As we moved lower, ALK had a false breakout on low volume as the stock made its way back above the neckline the same day. - As the right shoulder formed, volume was low on up days and increasing on down days - The final breakout confirmed on high volume. Another big indicator is the strong red candlestick that closed at the lows of the day (shaved bottom). After falling almost $6 from the first H&S neckline, the stock hit a trend line that has now been hit 4 times. The stock also hit what could be a neckline to another head & shoulders. If you look at the chart and the volume, almost the same comments can be applied to the larger (blue curves) H&S pattern. Considering the stock looks to be quite oversold, and given the 2 aforementioned resistance points, I believe the stock will retrace along its trend line up to the first neckline at $92. This is typical after a H&S is completed (red curves) as the bulls try to salvage something after being stopped out. Look for lower than average volume going up and high volume on down days. If It does retrace to the neckline, there will be very little room until a down day will break that trend line (especially with earnings looming on 4/26), in which case the stock will go much much lower.
NYSE:ALKShort
by myfye13
5
DAL: Buy on good earningsFAILED BREAKOUT OF HISTORICAL TOP MEETS MOVING-AVERAGE SUPPORT DAL is currently trading 15% below historical high, after it repeatedly failed to break out since late last year, on what looks like a quadruple-top at the historical high. However, the corrective move seems to have met a decent support at the MA100, $44 level. I would venture to say that the stock has found a temporary bottom and that the short-term picture looks positive. SUPPORTIVE FUNDAMENTALS In addition to the improving technical picture, the news flow from the industry has been supportive, as airlines have been publishing ever improving yield/occupancy numbers. As a confirmation, the DAL earnings have just come out and the stock is indicated up some 3% pre-market on the news. COMPELLING RISK-REWARD Strategy: Plain vanilla BUY at the market Target: $50/share then $52/share Stop-loss: $44/share Minimum R/R: 1.72x Alternatively sell a put at the stop-loss ($44) to finance a slightly OTM call.
NYSE:DALLong
by HAL9000
Boeing already looking overstretched pre-Trump announcementEyes are on Boeing at the moment, following President-Elect Trump's remarks on the possible future of Air Force One. It is worth noting that Boeing is already looking overstretched at current levels - momentum studies are overbought and prices are now trading in the historic distribution top from 2015-2016 - and risk/reward is turning lower. Could Trump's remarks provide the catalyst for the corrective pullback?
NYSE:BA
by Michael_Macdonald-XATSUK
LUV: Great accumulation at key level$LUV is showing a great accumulation pattern, right above an older 'Key earnings support' level. We can long at market open risking a drop to 35.40, and aiming for a retest of 39.97 in the intermediate term. This is a good way of leveraging a potential retracement in crude oil to be seen soon, possibly after the next OPEC meeting shows leaders fail to reach an agreement, or if they simply 'freeze' production at record levels (which is the same as sitting on their hands, and maintaining the status quo). Feel free to comment. Also, if interested in learning more about my private tuition and/or trading signals service, message me privately. Good luck, Ivan Labrie.
NYSE:LUVLong
by IvanLabrie
1
Airlines are flashing bullilsh signsHere is another chart sporting a compelling story. A bullish one that is. As my other recent posts, the Dow Jones US Airlines seems to indicate there's still life in this bull market. From its high of early 2015, the index decline in pretty much a textbook flat i.e. an ABC with wave B trying to kiss the high. Then we have near equality between A and C. Another interesting observation, the decline lasted very close to a Fibonacci 13 months or a Fibonacci 55 Weeks. Markets are patterned. In time and shape. You just have to deal with the fact that is rarely clear cut. Actually I think it has to be murky enough for most people to not believe in that theory so they can produce those patterns. The bottom line is the current advance from recent low is impulsive indicating the trend is now up and one as to expect at least 3 waves up at minimum for the airlines are bullish long term until we can count a sequence of 5 waves.
DLong
by yauger
Virgin Airlines: Up or down?Virgin Airlines was a growth stock turned sour. Even with fuel hedging and increase in revenue the market still does not approve VA and hence cause it's decline since it's high at december. Technical: Based on the chart, there are 2 anomalies that one should take note when trading this. 1) Between $30(green line) and $26.42 (blue horizontal line), the price has found support. This is a crucial zone and it is absolutely crucial that you do not enter the trade unless you are very very sure of the fundamentals else you will be catching a falling knife. This is known as the accumulation/distribution phase where thousands of shares are being exchanged with no prior direction. It is also where liquidity is highest and many "big boys" are either unloading or loading up stock. Do check insider transactions for more info 2) The descending triangle is marked by the same support level and a decreasing resistance. Based on bulkowski's formula that sets price target based on probability. I have marked where the predicted price would go. Fundamentals: Simplywall.st did DCF calculations and found it's fair value at around $14. This is close to Bulkowski's formula's prediction. VA is overvalued based on cash flow studies. However based on traditional ratio metrics VA is undervalued. P/E stands at 6.52. PEG stands at 0.26. P/S stands at 0.81 and EV/EBITDA stands at 4.67. They do have quite a bit of debt but their cash flow could easily pay it off. Story: Investors believe oil and the Zika virus would affect sales of this stock heavily and hence they are bearish about it. Would I go long? Yes! Once the price exited the $30 zone. Would I go Short? Also yes!. Only of the price drops below $26.42! Would I do anything now? No! I'm not catching a falling knife. Market is ??? about this stock. So trade after breakouts.
V
by soldierducky