ALK may be setting up for a long its building on the inverted HnS pattern, lets see if it follows through with a breakout..
ALK trade ideas
Alaska Air LinesI like the pattern, fridays volume was nice, today's volume was average but good candle. If Inverted Head and shoulders confirms I like the two target lines listed.
4:1 Risk/Reward
ALK Double H&S PatternAfter forming a perfect Head & Shoulders pattern, a larger Head & Shoulders is taking shape.
The already completed H&S pattern is pretty much a picture perfect formation.
- Left shoulder shows strong volume on the upside and lower volume on down days
- The head shows increased volume on positive days at the beginning, but volume fades as ALK makes higher highs. THIS IS A TELL-TALE SIGN WE REACHED A TOP
- As we moved lower, ALK had a false breakout on low volume as the stock made its way back above the neckline the same day.
- As the right shoulder formed, volume was low on up days and increasing on down days
- The final breakout confirmed on high volume. Another big indicator is the strong red candlestick that closed at the lows of the day (shaved bottom).
After falling almost $6 from the first H&S neckline, the stock hit a trend line that has now been hit 4 times. The stock also hit what could be a neckline to another head & shoulders. If you look at the chart and the volume, almost the same comments can be applied to the larger (blue curves) H&S pattern. Considering the stock looks to be quite oversold, and given the 2 aforementioned resistance points, I believe the stock will retrace along its trend line up to the first neckline at $92. This is typical after a H&S is completed (red curves) as the bulls try to salvage something after being stopped out.
Look for lower than average volume going up and high volume on down days. If It does retrace to the neckline, there will be very little room until a down day will break that trend line (especially with earnings looming on 4/26), in which case the stock will go much much lower.
Go longI like this stock but only for a very short term move because earnings are in one week so im just looking for a 5 days move.
This is why i like this stock:
The stock bouced at a very strong support line.
There was a complete change of emotions today, a change of power. ( The bears had control last week and were in power but today with a gap up and with a close for a positive day, the bulls are now in control and have the power. A lot of bears are starting to wonder if the should exit tomorow if the stock move higher and maybe some people took their gains today so this looks strong for a reversal
When you see a nice downtrend move or uptrend move and then an indecision candle, it means that something is about to change in the direction of trend and this is what happen today.
Inverted Head and ShouldersThe stock might have completed its bottom as an inverted head and shoulders just got completed. My target is 82-86. Time to buy?
Top since MayWe have reached the top and at the same time the bottom line of the former uptrend. The shooting star yesterday confirmes the resistance.
ALK: Potential long term long, courtesy of Nick CoulbyMy good friend Nick Coulby (@ncoulb1) has brought this stock to my attention and I think it could constitue a nice addition to a long term portfolio, with good valuation after testing a massive support level, and expanding the daily range up today. You could opt for shorting puts or going long stock, with either a 1 or a 3 ATR stop loss here, depending on your risk profile.
Good luck if taking this trade and make sure to check out Nick's profile.
Cheers,
Ivan Labrie.
ALK: Huge volume breakoutIn the most straightforward scenario, this stock should trade in a narrow consolidation range for a few days before continuing downwards to the dotted line support.
same Can they forgive this Same as LUV & DAL Oils are beating this sector up and I don’t recommend to buy
Alaska Air Group - Anatomy of a BubbleAlaska Air Group displays clear characteristics of a bubble, more precisely of a bubble preparing to burst. On the wings of a 6 year old bull market and more recently fueled by cheap oil prices this stock was propelled from 2.53$ in 2008 to 82.78$. The stock rose more then 30x from the low or as Peter Lynch would say, for those that bought it at those prices it became a "30 bagger". With the whole stock market weakening recently and especially the transports coupled with what I think is a bottoming process in crude oil I feel that Alaska Air is slowly losing the air beneath is wings.
The technical picture adds weight to this assessment with a daily and weekly RSI divergence (displayed on the chart on the right) plus I think ALK's chart is eerily similar to gold's chart in September 2011. Therefore it is likely that the future development of the chart is going to be similar.
I suggest shorting the stock with a weekly stop above 83$. The target is the 40-45 area with partial profit taking around the 60$ area. You may also try and buy a couple of out-of-the-money put options and see if you can catch a potential sharp move down and profit from the tail risk. Be careful though, earnings are on 10/22 so keep your position small and set your stop wide enough so you can weather the volatility.
Whoever chooses to go with the trade good luck.
For a full list of instruments traded in the lifetime of the portfolio and for performance go to the Performance section: www.highprotrading.com
$ALK Bullish Butterfly $ALK has form nice bullish butterfly pattern. The weekly also tested a support. Some Analyst has target price around $60-$70 area. Earning also bid the estimate by 3%+. Technical analysis is strongly supported buy its fundamental.
#ALK
ALKNotes on chart. The cup is struggling to REMAIN confirmed. Therefore, might be a good idea to wait for the Pennant to confirm
