LUV Falling wedgeAfter the offering they will have plenty of cash, PPP helped...going to say long from here...
SWN trade ideas
sorry your flight has been reach the limit This airline is set to report tomorrow. This stock has been crush obviously to do with the market swings and the fear of COVID-19. it looks like this is triangle within a another triangle. we already know that a fewer seats is not being use do to the distance guidelines.
SOUTHWEST AIRLINESNYSE:LUV
Hello, everyone.
The market has been very unpredictable lately.
Instead of the usual 7 stocks in the Russian market and 10-13 stocks in the American market, today I have selected only 4 stocks for trading in America: LUV, JEF, NKE, CNK. I don't see the need to select more today, because all of the securities are supposed to go well. But anything can happen.
Iwould like to take a look at SOUTHWEST AIRLINES CO.
What I see:
Global trend: Short.
Local trend: Long.
It's a strong historical level.
Further retest of the level was held back on March 18.
Then 3 more times we tried to overcome this level, but could not.
Despite the fact that there were false breakout, there were no strong kickback after it, which suggests the presence of a large seller.
Strong pressure on the level.
I'm going in the direction of the global trend below the level.
LUV Long, breakaway Gap and back to weekly demand zoneCondition:
1. 10/17/2014 weekly Demand zone confirmed
2. Two breakaway Gap (G1, G2), Two down trendline break
3. Re-test weekly demand zone
Estimate: next breakaway Gap (G3), down trendline break;
Entry: 31
Stop: 28.5
Target: 45; risk/reward=1:5
This is a trading school homework. I need 6 months to practice trading plan.
If you like it, thank you for your support. Please use SIM/Demo account to try it, until my trading plans get high winning rate.
LUV (Southwest Airlines)the stock is currently in a downtrend. $30 appears to be the temporary bottom for the stock. the stock reports earnings this Thursday. with the stock currently trading near the temporary bottom, things can get ugly on unexpected bad news or excessive selling. the next support level for this stock is near $20.
LUV Daily Tightening RangeLUV is clearly tightening on the daily timeframe with a series of lower highs and higher lows, forming an equilibrium pattern, triangle, whatever you want to call it. The point is that the break is imminent and it’s direction will likely be dictated by the stock price’s reaction to earnings next week.
The most important levels right now are 29.73 support (and 29.15, the dump low, which is so close to 29.73 that if we break 29.73 we are also likely to break 29.15) and 37.31 resistance, then 43.56 resistance. Bulls are going to have a harder time than the bears on a bull break of 37.31 simply because the next resistance is so far away whereas bears can slice through both supports at once if we break down from here.
From here I would fully expect another higher low to be set in a few days in order for the range to continue to tighten. Look for a trend change on the hourly from lower highs and lower lows to higher lows and higher highs to signal that the daily higher low is set.
About the break: the bears have the weekly and monthly down trends in their favor. However, for monthly chart, this the first time since 2012 that RSI is around 30 (oversold levels) so I would expect a monthly oversold bounce to take place before we can continue to lower lows. Whether that monthly bounce comes on a bull break of this daily equilibrium or a rally from the lows after this equilibrium breaks bearish I can’t say.
We are closer to breaking support than we are to resistance right now, but I am expecting a daily higher low to form and a bounce to potentially form a daily lower high after that.
Compared to other airlines (UAL, DAL, AAL) LUV stood out during the dump as the most resilient. On the one hand, I might expect LUV to be a lead bull if this equilibrium breaks bullish due to how well relatively it fared vs other airlines but on the other hand, there is a huge zone of previous support now resistance at ~$45 level. Compare this to other airlines which barely formed any support on the way down and will therefore have much less resistance on the way up if we do break bullish from here.
Thanks for reading. Hope this makes sense.
Southwest Short Due to price action and previous data points in similar market conditions there is likelihood this stock remains bearish for some time. Also, the recent stimulus plan did not include airlines in it. So until a bailout comes for the one or two people flights that are happening these companies Earnings will continue to go down and some airlines will go bankrupt. Being that Southwest is a stronger airline it will take a lot more to destroy it but will still be effected heavily by the current declining revenue coming into it.
