airlines are getting hammered again however there is something special about CHR over AC. They do regional airflights meaning while they are still effected by covid they wont be as impacted as airlines with international flights like AC. AC is currently about 67% below its precovid levels while CHR is 70% which I think is unjustified. . more over, the Canadian government plans on subsidizing regional flights. while it benefits both AC still has more baggage
Technicals look alot better for CHR imo aswell for this upcoming week.
Currently its sitting on strong support. On the 4 hr we can see a 4hr oversold bounce coming
On the 1 hr we have bullish divergence indicating a good possibility of a double bottom. 2.5-2.6 is likely some heavy resistance and we have a downwards trendline so that would be a good spot to take some profit. I do think the orange trendline will be likely broken for a possible target of 4.
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Maybe it would be a good idea to hold off this idea. Montreal has just announced a high alert.
I am sitting at an avg. price of 2.40. I was going to averag my positions should it move lower. Is this a good time to average at 2.30 in your opinion? or is there more room on the down side?
Thanks for the idea, I like it.
gNnairdA
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@tsx_trader, I believe it will likely work in your favor as I believe it will be bouncing based on my analysis, but it really depends on your risk tolerance. The RR is pretty good for this trade with . Maybe Take some profit at 2.4 if you do . No promises though, anything can happen in this market. :)
tsx_trader
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@gNnairdA, Looks like today was day 1 of the upside. It went up nicely. Lets see if it carries on for a few more days.
gNnairdA
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@tsx_trader, Nice! I personally took a small loss as I didn't feel comfortable holding an airline as covid numbers went up. but looks like you're approaching some resistance at your breakeven spot
Thanks for the idea, I like it.