Alaska Air Group: Double Bottom
Overview
Alaska Airlines is a subsidiary for Alaska Air Group. If you aren't familiar with the verbiage, this means that Alaska Air Group (
ALK ) is the umbrella company that owns Alaska Airlines. In light of the Boeing ( 
BA ) mishap that occurred yesterday in Oregon and in addition to the current trend on ALK's 1D chart, I believe ALK will correct to $30-31.
Technical Analysis
According to the 1D chart, ALK has been on the trajectory of a double bottom since July 2023. The last dip in the double bottom formation rests around $30-31 which I believe will approach sooner than expected due to ALK's grounding of an entire fleet of Boeing 737 MAX-9s. As long as nothing else negative comes to light, I believe ALK will begin its rise to $57 sometime after arriving around the second dip of the double bottom.
Market Psychology Speculations
I believe Boeing will catch most of the negative press but that doesn't mean Alaska Air Group is off the hook. Because ALK's subsidiary has also been in the headlines, I think the double bottom is going to accelerate. Alaska Airlines has received bad press twice in the last 12 months for narrowly avoiding aircraft-related catastrophes; the first concerning an off-duty pilot that attempted to cut off the engines mid-flight.
All that said, after the initial dust has settled, I believe the markets will forgive ALK and a potential recovery will begin. Kudos should be given for having the proper procedures in place that helped return both aircrafts back to the ground safely without incident. The next major factor that needs to be considered is how the grounding of an entire fleet will affect their balance sheets for the upcoming Q4 Earnings Call.
Fundamental Analysis
I will perform a fundamental analysis within the next few days. Due to market reactivity I don't believe a healthy balance sheet will cushion the share price until after the Q4 Earnings Release.
Alaska Airlines is a subsidiary for Alaska Air Group. If you aren't familiar with the verbiage, this means that Alaska Air Group (
ALK ) is the umbrella company that owns Alaska Airlines. In light of the Boeing ( BA ) mishap that occurred yesterday in Oregon and in addition to the current trend on ALK's 1D chart, I believe ALK will correct to $30-31.Technical Analysis
According to the 1D chart, ALK has been on the trajectory of a double bottom since July 2023. The last dip in the double bottom formation rests around $30-31 which I believe will approach sooner than expected due to ALK's grounding of an entire fleet of Boeing 737 MAX-9s. As long as nothing else negative comes to light, I believe ALK will begin its rise to $57 sometime after arriving around the second dip of the double bottom.
Market Psychology Speculations
I believe Boeing will catch most of the negative press but that doesn't mean Alaska Air Group is off the hook. Because ALK's subsidiary has also been in the headlines, I think the double bottom is going to accelerate. Alaska Airlines has received bad press twice in the last 12 months for narrowly avoiding aircraft-related catastrophes; the first concerning an off-duty pilot that attempted to cut off the engines mid-flight.
All that said, after the initial dust has settled, I believe the markets will forgive ALK and a potential recovery will begin. Kudos should be given for having the proper procedures in place that helped return both aircrafts back to the ground safely without incident. The next major factor that needs to be considered is how the grounding of an entire fleet will affect their balance sheets for the upcoming Q4 Earnings Call.
Fundamental Analysis
I will perform a fundamental analysis within the next few days. Due to market reactivity I don't believe a healthy balance sheet will cushion the share price until after the Q4 Earnings Release.
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