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SAVE

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.
SLong
by XForceGlobal
Profit taking occurring on SAVE for the next few daysIn early May, Spirit airlines was tanking. I had recognized that there was a double bottom in play at the 7.50 range so I loaded up on some SAVE shares to look for a profit taking move. For the past week, this stock has been on fire, having multiple days of 30%+ gains. I feel that we are going to see some downward potential here in the short term. RSI is currently in the oversold level on the 4H, and after such an aggressive impulse, I would anticipate that there will be some profit taking going on over the next few days. I anticipate that SAVE will hit the yellow ascending support line, at around $19.00. If this support tumbles, I think it may be a bear trap would expect the stock to fall to around $16.50 before reversing its course for the next leg up on its up trend. I will be looking to add to my position at both the $19.00 and $16.50 levels. My bias will change if the stock closes below $11.50. I think in the long run, SAVE will revisit the price it was trading at the beginning of the year.
SShort
by xcbickel
4
$SAVE growth since Last Prediction, Log Curve Should StablizeFirst off, please don't take anything I say seriously or as financial advice. As always, this is on an opinion based basis. That being said, I think Spirit Airlines is a long hold in general but looks like it is soon about to dip given how long its bullish run was. I would take the nice profit and likely reinvest in the dip if that was the case, as the bubble can start getting broken. It peaked at 12% growth today before going down 7%, and resistance seems to be tightening up. If you want a higher profit turnover, I suggest not waiting until all your profits go down.
SShort
by gamer456148