SKYW 10/25/2023

NASDAQ:SKYW   SkyWest, Inc.

Daily chart analysis

On every rally since 2020, the price has continued to form lower highs ever since the impact of COVID-19. The high point was in January 2020, and subsequent rallies in March 2021, October 2021, and August 2023 all failed to surpass the previous high.

After being in a downtrend throughout 2022, the price rallied and then pulled back for the entirety of 2023 so far. It briefly rose above the level it fell below in January 2022, which marked the start of the downtrend. However, the price couldn't sustain this momentum. It began moving sideways between July and early October 2023, forming what appeared to be an M-Top pattern. The price then broke down below the M-Top's neckline, confirming a bearish reversal pattern. Interestingly, this neckline also corresponds to the resistance level established in January 2022 when the price entered the downtrend. This suggests that the price is likely to continue the previous downtrend.
Entering trade short.

Entry: 38.27
Stoploss: 44.17, -15.42%
Target: 14.93, +60.99%, 3.96 RR ratio


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