Airlines, bottlenecks and COVID-19!Have a close look at this very busy chart. There is a crisis in airline industry after COVID-19 struck. Some do not realise how serious this thing is. Expand and drag the chart a bit if everything does not fit nicely.
The airlines are connected up to many things. I could not include everything. But for basic GDP when the airlines are hit GDP and trade are hit. Of course a big part of air travel is the holiday and entertainment industries.
What his chart means really, is that a sizeable proportion of people won't be 'in the air' if they can't get a hotel or other accommodation. All that is very much linked up to ground transportation, and places of work (or entertainment).
Your leaders can 'open up the economy'. However, it'll be like wheels spinning on ice - no traction. I have to let my followers know that 'I don't rule the world'. You all need to talk to a chap who has golden hair. LOL!
I'm not flying anywhere for the next 18 months, even if I get an all expenses paid trip handed to me! Others can take their chances. The point is that lots of people may be thinking their life is more important than a holiday. Of course, if you saw protests in the UK and the USA, you would know that not everybody thinks like me.
Disclaimers : This is not advice or encouragement to trade securities. No predictions and no guarantees supplied or implied. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
Airlines
JETS - LongI like to use JETS to trade any of the airline stocks( DAL , UAL , AAL , LUV , JBLU , SAVE .
It seems the overall market could just pull back a little and continue on with the short squeeze, so if the last gap up pattern plays out again, I'll be entering positions in a few airline stocks when JETS traces back to bottom of the gap up candle.
Boeing BA Buy Setup - How to TradeTo the bulls, Boeing looks like it may have bottomed with an ascending triangle formation. To the bears, it looks like Boeing reached the top of a bear flag. There is no way on knowing who is right, but this is how to trade it.
Bear flags are essentially ascending triangle breakouts that fail. When an ascending triangle breakout fails, bulls become disheartened and are likely to bail on their long as soon as the supporting trend line breaks (pink).
Bears sold today when the price hit the red line, which would be the upper part of a potential bear flag. You might be asking yourself, how could they sell on the red trend line when it didn't exist until today? Some say you cannot draw a trend line off only 1 point, and they are wrong. So where did this trend line come from?
Simple, copy the pink trend line and paste it directly on the local high. You will see that this forms a perfect bear flag and a great place to take profit / sell. A lot of experienced traders use this method to create trend lines from only 1 point and I know first hand that it's a very profitable strategy for finding amazing areas to take profit and short.
Did you miss out on the Boeing move today? No worries, here are three areas to enter a long.
1. You can wait for the price to come back down to test the ascending triangle breakout (blue support line, red star).
2. You can also buy on the pink trend line (green star) if price happens to drop that low.
3. There is 1 more trick to ascending triangles that many people do not know about (see my example above). Sometimes they are not perfect patterns, but the stay intact even if the pink line breaks. If price fails to make a new low, you can buy at the pink star in hopes for a double bottom. Ascending triangles signal that people are buying the dip, and if price bottoms at the previous low, this means they are still buying the dip.
Personally, ascending triangles are my favorite patterns to trade because the buy points are flat or ascending, making it easy to set a reasonable stop loss. It is also the most common pattern I see on strong trending stocks, on all time frames. You'll see them on the monthly chart as well as the 30 second chart. They simply signal that people are buying the dip and becoming more impatient with each drop, that is why the dip becomes less and less until it eventually breaks out the top from all of the buying pressure thanks to impatient buyers.
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Waiting for BUY AFTER RE-Open world Airlines.NASDAQ:AAL
Let's wait to see if COVID-19 Uncertainty reduce,
Two things we need to watch out the market, ALL stock index expecting for more crush before V-SHAP recovery next 3-6 months, DJI Expecting crush again towards 20,000$ and NASDQ100 8500$ once this crush has done, good to buy airlines stock and all other stocks
Airlines are a tricky and complicated business that, personally I would stand aside but long term good to hold and wait for lockdown end.
🛑SUPPORT/RESISTANCE
✅S1= 9.8$
✅S2=6.9$
✴️R1=13$
✴️R2=24$
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BOEING ($BA) | Is Everything With Wings Taking Off? ✈️👨🏽✈️ Boeing and airline stocks have performed very well recently, in-fact many of the stocks beaten down by COVID are on the move. Of all of these stocks, Boeing has one of the best looking charts around. Add to that that production is ramping up along with demand, and we have a great justification for a long position along with the newly formed bullish uptrend.
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1. Fractal Trend is showing a freshly formed uptrend (Aqua colored bars) on the 1-hour timeframe.
2. With this strategy, we are looking for long setups in an uptrend and as such want to enter long on retests of bullish order blocks plotted by Orderblock Mapping (Aqua colored lines) and/or bullish S/R levels plotted by Directional Bias (Aqua colored lines).
3. The play here is to buy a potential pullback to the S2 orderblock and S/R flip, as we suspect it will act as support due to the significant recent reactions to this range.
4. Our stop is placed below S2 and our target is a retest of the current R1 orderblock where we expect to find resistance. This gives us a solid 5.31 R:R.
Although Boeing may just keep going, we don't think it is heading for more downside unless the broader market sees a significant change. Given that, the logical play for us is to buy support. Of all potential supports which retain the bullish structure, S2 is the most logical, and given that the rest of the setup falls into place.
Good luck frequent flyers!
Can Spirit Airlines start a recovery cycle?First off, please don't take anything I say seriously or as financial advice. As always, this is on an opinion based basis. While, I don't personally like airline investments at this time period (for obvious reasons), I feel like as restrictions slow down, the supply and demand curve dramatically changes. Spirit Airlines already been dramatically beaten up a bit, and I see a positive retracement already happening for what will be a slow recovery cycle.
Air Canada looking for 20% run?Hello traders,
AC stocks looking bullish mid-short term:
1) Morning star reverse bullish pattern
2) Daily MA50 is starting to curve upwards
3) MACD is gaining bullish momentum
As long as AC closes above $16 next few days, my target will be:
1) $16.80
2) $18.00
3) $19.30
4) $22~$22.2
Stop loss: $15.5
Air Lease profitable in Q1As airlines continue to struggle to find their footing in today's current market Air lease is in a great position to provide aid to the airlines while also generating revenue. Their business model of owning over 300 aircraft that are being leased out to commercial and private airlines ensure that they are able to generate consistent cash flow while holding many of the assets on their on books.
Taking Advantage of Cargo movementCargo Airlines are taking over the skies. As commercial routes are no longer able to meet the demands of the logistics and transportations supply chain, cargo airlines are filling the gap.
In the end of last year Atlas air looked at ground 3 of its aircraft due to lack of demand with trade war tension and covid-19. As demand for cargo freighter remain high the reintroduce one of their B747 to take advantage of the opportunity.
As the price of the stock has rallied quickly looking for a retest towards previous supply zone would be a key target to secure an ideal entry price
American Airlines Supportprice has respected the levels near the bottom range of the current price. As we are continuing to test the support levels and create a more prominant bias and the market condition begin to strength one can look for a potential in holding AAL towards previous highs. Although the time range for this correction to occur could take weeks over time as the consumer confidence raises.
Tight Channel on UALUnited Airline has dropped down from its all time highs and is currently being pushed into this channel range that price is creating.
As volatility drops dramatically the potential of massive spikes reduces and we can start to look for opportunities to trade most consistent and less volatile markets
long AALWith the idea that we are seeing the light at the end of the tunnel. Many states are opening up even in phases. AAL will rise with the markets.
looks like it might even be able to reach $13 if not the end of this week then by the end of next week.
The only thing I can see slow down progress for airline stocks is another outbreak of the virus. They will also not be back in full capacity I understand that 100% In fact I have Airline workers that have said they will cut the capacity by %30 which may increase rates by 30%+
Nearing Speculative Buy PointAirlines have been dumbstruck by this health crisis and many have lost all the stock gains since the financial crisis. That being said... we are still going to use airplanes right? Maybe they'll need to update health and safety procedures and spend a little more money on cleaning the planes, but we don't really have another feasible option for long distance travel, SOO... Future Demand exists.
The descending wedge pattern we've been in since mid-March may be a reversal pattern. I would not recommend entering a long trade until we get confirmation of a reversal on the shorter time frame and a daily break out of this wedge pattern.
AC.TO for the Long RunI am 21 and besides trading , I have set aside a designated portfolio for long term holdings. Stocks to hold up to 30 years. This is why I believe Air Canada is a suitable stock for any retirement portfolio.
1) Current market price is lower than IPO price from 14 years ago.
2) Given the current market price, there’s a return opportunity of 158% or $30 gain per share assuming the ceiling price is the all time high of $50.
3) Canada has a population of less than 40 million people. Given that’s the second biggest country in the world with one of the highest qualifies of life, one can expect lots of immigration, travel, and tourism growth. All good news for the airline industry.
4) Oil prices have never been lower, and that’s another great news for a company who’s biggest operating expense is fuel.
5) Just like the United States government has bailed out United Airlines, the Canadian Government will do the same thing to save the biggest and most prestigious air line in the country. So even if the company goes bankrupt, government bailout is a reality.
Note - I believe the stock price will drop momentarily, and that’s when I’m preparing myself to double my current position.
Spirit Airlines $SAVE$SAVE is still in bearish side and after it formed an unconfirmed cup, now it is looking for its direction. Breaking below $7.25 will confirm the cup w handle,inverted. There is a positive divergence which is a signal for upward. However, there are 20SMA (red one) and 50SMA ahed will work as the resistances.
I would wait to get above $18.68 to be long.
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