Looking at southwest I was initially enthusiastic about an easy move to around the $61 level. After reaping the rewards of some strange earnings yielding a near 9% return on the 26th of July, I decided I would stay in my position for one more day and see how the momentum would swing. When I was up nearly 2.42% ($58.08 luv) I decided to sell. Even though the volume was continuing its explosive path I noticed from the previous major trough where explosive price action took place had many similarities to the divergence that was forming right now. I think on Monday or Tuesday I small pullback will occur before the larger gains happen week on week for a couple months potentially testing new all time highs. Also not to go into too much depth because this trade is really out of greed and just trying to earn some extra shares while I can, the current RSI levels seem to be testing historically hard levels to sustain. If I had to put my faith into one indicator and one indicator only, it's RSI. When Southwest historically tests the low 70's to mid 80's it doesn't last long and a small (or big) reversal occurs. Lets see how the momentum can fully play out next week!
Happy trading :)
Happy trading :)
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.