Strong Support Broken for NYSE:LUV by Vinny10

41 views

trendanalysis chartpattern beyondta southwest airlines luv transports transportation

I feel the gap will fill. We're in a Daily & Weekly Squeeze.

Fundamentals: I see revenue for airline industry in general to be on a decline throughout the rest of the year due to COVID. I am thus looking for COVID lows to be tested and later taken out. I do NOT recommend buying airlines right now

Trade closed manually: Didn't sell off as expected in the time-window I had in mind

Comments

wait for the day to close. Look at todays closing price. Dont think LUV will go down from here much. 1 of the best airlines.

Reply

LetsBeMillionaire

@LetsBeMillionaire, We opened and closed under support. Further, June 5th's candle high is exactly 61.8% retracement of the preceding sell-off (Feb 2020), which may indicate May 14-June5 price action is just a dead-cat bounce. With all breakouts there are always possibilities for fake-outs, but I don't think that will happen due to two reasons: Not only did LUV failed to rally after July 15's gap up but also during a good earnings report

Reply