Airline
Boeings elliot wave Boeings 5 waves (elliots wave) have been completed and the price has retraced to point 4. Their recent earnings are being made public tomorrow; assuming they wont be great at all due to the coronavirus pandemic slashing its production rate.
I can see the price falling close to point 4 again, perhaps $135-$140.
AAL Non-MovementDirectional plays within some of the airline stocks have now become obsolete as volatility has dropped significantly for the sector. The last three earnings reports have all been in at a loss with final reports being slight better than estimated. The market is expecting the worst right now which is in turn affecting the stocks ability to rise.
1 standard deviation range set to monitor price range for Iron Condor strategies.
LUV - SouthwestFollowing the channel down smoothly and having the sudden spike in price is being followed by a move back down. From the high of the short bear rally price has already retraced 50% of its gains. Making its way towards the .382 value to make the next test on that range. Looking to see for a potential low area underneath for target range
United Support levelAfter a down week from a quick pop rally, we have a strong bullish candle right before the end of the week. Day to Day volume of trades remain high which keeps volatility high. Looking to see how price plays near this support of the channel will help determine our next trade from here. Based on standard deviations one can be able to determine the next highly probably price target points before we have earnings in July.
SAVE: Strong Fundamentals, Bullish Technicals 1W (Jun. 19)X Force Global Analysis:
In this analysis, we take a look at Spirit Airlines, a company leading the ultra low-cost carrier business in the US. We explore the company's fundamentals, as well as its technicals to assess its bullish probabilities.
Fundamental Analysis
- Spirit Airlines (SAVE) has shown an extremely steady growth over the past years.
- Their revenue and net profit showed a steady increase throughout time
- However, as with most other airline companies, Spirit Airlines was also heavily hit by the Corona Virus (COVID-19)
- As a result, they have underperformed in terms of quarterly eps, in Q1 2020
- Nonetheless, as the stock market continues to bounce strongly, and the effects of the virus begin to mitigate, we see signs of a continued bullish rally
- With businesses slowly returning back to normal, given that Spirit Airlines' financials remain intact with the current upwards trend, we could anticipate higher returns this year, compared to last year.
Technical Analysis
- Technically, the stock is extremely oversold
- It has broken through the historical support at $33.13, testing new lows
- However, as it dropped so severely, it has dropped in a choppy manner, creating multiple gaps on multiple time frames
- The easiest to spot and refer to are the gaps on the weekly: there are gaps at $10.74, $40.42, and $51.95
- Prices have been trading under the Ichimoku cloud, indicating a bearish trend, for over a year now
- We have two significant resistance lines: the short and long term descending trend line resistances marked in a dotted red line
- The Relative Strength Index (RSI) is forming lower highs, as prices are suppressed by an external factor - the Corona Virus (Covid-19)
- However, the Moving Average Convergence DIvergence (MACD) has formed a golden cross, with immense bullish histograms, demonstrating momentum and strength in the bounce
What We Believe
Spirit Airlines is a rather unpopular stock, with surprisingly strong fundamentals and financials. Technicals demonstrate 3 main areas of resistance: at $33 levels where the short term descending trend line and historical resistance converge. as well as the upper span of the Ichimoku cloud. The second major resistance lies around $40-42, where the previous local high at the 0.618 FIbonacci retracement remains with the price gap. Lastly, there is strong resistance around $51-55 where the 0.786 Fibonacci retracement, and price gap lie, with the long term descending trend line resistance converging. Eyeing these three major areas of resistance will help investors enter positions based on confirmations provided by the trend reacting to these levels. Should we break the final resistance, it's highly probable that SAVE moves to retest all time high levels, and possibly even create new highs.
Trade Safe.
The Future of BoeingA friend asked me for my view on this on last FridayI will never look into airlines and related stocks, with covid19 going and most borders, without intervention I don't see how this can be a bullish stock for the year.
Well, but you are already in it, congratulation. If you are conservative I will wait at 238.12-261.42 and wait for a reversal signal to exit the trade.
If you are extremely gung-ho on this, then $320 will be good.
LONG $GOL, longtermBrazilian airline stock $GOL has a perfect set up, bought it last night, and its up 20% already!
Breakout on the ascending triangle could bring in a real big push! Longterm hold for me, will bounce back nicely!
Price Target: $10-$20
Holding Long on EmbraerLast month We looked at the potential of putting on out of the money calls for a small premium cost with an expiration date for late in the year.
As the price of ERJ hits the low of just $4 we are starting to see a bit of strength and support be met at that level. As we start to move up from the all time low looking to follow the trend line will be a strong indicator that momentum is on our side.
Spirit AirlinesWhile many international flights have been cancelled domestic carriers are continueing to operate essential routes within the united states.
As traveller look to potentially travel more the projections for domestic travel are higher for the short term than international travel as many borders still remain tight with restrictions.
$Dal - profit taking is near?RSI over 72 (bearish)
MACD: Repeating pattern from April 29
SMI Rolling over at 1 month highs
Would not be surprised if it dropped back into the lower gap or bounce off of it before testing upper gap.
I don see a lot of reward for airlines at this level. Will most likely wait for entry in the 30's.
SIA - AnalysisSTOCK IN FOCUS: SIA
The pandemic situation shocked many markets, and the impact seems to be just gaining traction in the West. The situation does not seem to be slowing down yet, and it will still take time for any recovery to the pre-virus phase. Aviation is definitely one hard-hit industry, with governments having travel advisories and even banning flights to and fro certain countries.
SIA is such example being an aviation stock. The stock price has dipped to a critical zone (down 24% from end Jan' 20), but I believe that the zone may not hold, and price is likely to fall through, possibly reaching the indicated price support levels where we could see price rebound off.
Price support 1: $4.84 (46% discount from end Jan' 20)
Price support 2: $3.83 (58% discount from end Jan' 20)
Potential reversal up the upside or downtrend continuation. What is LUV?
Southwest Airlines Co. is a major American airline headquartered in Dallas, Texas, and is the world's largest low-cost carrier
if your bullish on the airline sector, you can take long position here or around $30.41.
or short it at $31.
but if overall market goes bullish, we could see
1st target around 34.57
2nd target 38
3rd target 46