The S&P 500 just closed at its lowest level in about two months. Southwest Airlines, on the other hand, ended last week at its lowest price in over two years. Is that a sign of incipient weakness in the carrier?
This chart shows the series of lower highs since the spring. LUV held roughly $35 over this time, resulting in a potentially bearish descending triangle. Prices managed to bounce at this level in July, which could make sellers more aggressive if the shares continue lower this week.
Next, consider how the stock hit resistance at the 50-day simple moving average (SMA) in July, August and September. That could suggest its trend remains downward.
Finally, this chart includes our 2 MA ratio custom study. The default settings of 8-day exponential moving average (EMA) and 21-day EMA are shown. Notice how the fast EMA has been under the slow EMA for the last month. That could suggest short-term momentum remains bearish.
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Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
This chart shows the series of lower highs since the spring. LUV held roughly $35 over this time, resulting in a potentially bearish descending triangle. Prices managed to bounce at this level in July, which could make sellers more aggressive if the shares continue lower this week.
Next, consider how the stock hit resistance at the 50-day simple moving average (SMA) in July, August and September. That could suggest its trend remains downward.
Finally, this chart includes our 2 MA ratio custom study. The default settings of 8-day exponential moving average (EMA) and 21-day EMA are shown. Notice how the fast EMA has been under the slow EMA for the last month. That could suggest short-term momentum remains bearish.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.