The seems to be making an ascending that is coming to an apex.
If the ascending or trendline breaks to the downside I think it's likely to revisit the recent lows and possibly head to around $1.20 which is roughly the lows of 2012 & 2014 as well as 1.618 and 0.618 fib extensions of wave 1 & 3 respectively.
I assume a lot of traders might have been speculating on Qantas possibly being the only airline in Australia after Virgin stopped trading. The news of virgin being offered a $200 million bailout from the QLD government after hours on Friday might cause some to exit their positions going into resistance.
I remain slightly bearish on Qantas until we break above the green resistance band.
The next week will hopefully show us if the low is in or if we can expect to retest the lows of 2012 & 2014
Bit of bad news suggests Qantas could slide a bit more in the coming months if they're forced to pay up.
Qantas and Perth Airport are currently locked in a court battle over $11m in unpaid fees.
The airline has also refused to pay rent to other airports around the country for February and March, in an effort to preserve its cash balances during the coronavirus crisis.
Qantas chairman Richard Goyder has called on Perth Airport to immediately withdraw termination notices issued to the airline on Friday, saying they amounted to eviction notices and would result in operations at the airport stopping within a fortnight.
On Friday morning, Perth Airport signalled it was prepared to begin tearing up several leases of its biggest customer, as tensions between the two businesses reached a breaking point over claims Qantas owed $20 million in aviation and rental fees unpaid since February.
QLD Government indicating it wants to buy VAH along with US stocks & airlines dropping overnight might have been too much bad news at this critical level.
If we look on the hourly Qantas is currently on a 9 which marked the last 2 local tops, so I think a pullback is likely, the question is will people that entered above 4$ get scared and pull out causing more selling pressure or will $3.85 turn into support.
Overall starting to get less bearish on Qantas, but I'd need to see us break and close above 4.30 before completely giving up on the bearish scenario.