LUV trade ideas
Airlines Ticket to ride, pick your pricepointIt is ovious that this sector is heating up. Loads of bodies of their books, delincuent uncolectable debt. costly SLA fines waved, and cancelled plane orders with no penalties, on top of it loads of stimulous coming their way. The institutional buyers are shameleslly creating this pattern and its about to break. Lets take AAL as an example" Could it consolidate before it jump? Yes, but the top of the corridor is around the 15 dollar area so the run up its likely. I would enter this trades with tight stops, no point on giving away money, and a core position with a wider stop. The corridor goes from 11ish to 15iah, once it breaks its gonna be very very bullish. The hole point of this post is to direct your attention to the sector and evaluate trading oportunities we all profit from.
Important:
Amplitude for day trading : THis stock is more of a Swing trading stock but if you want to daytrade it, you need at least 100 shares as you have an amplitude or intraday tradable variance of 40 cents to a dolar. Anything below that would be hard to enter and exit...Size it for the amplitude.
Just a thought....
Good luck.
BUY to SOUTHWEST AIRLINES COHey traders, SOUTHWEST AIRLINES CO is in a fake bearish push with low executed buy volume and stronger shadow among sellers. The TIMEFRAME M1 makes us notice a tombstone with a low past sales volume. High potential to break out the price then at the same time breakout a stabilization zone to reach the next high. And if the buyers enter the volume, reach the top after a breakout of a new stabilization zone. Visibility on (MULTIFRAME D1 H4 and H1).
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Southwest Airlines (LUV) forming an ascending triangleI believe that LUV is one of the strongest airlines financially, and it also serves the consumer market more heavily than many of it's business oriented competitors.
With vaccines and stimulus headed down the pipeline for 2021, and pent up consumer travel demand lingering, I think that we see most airlines rally in the 2-4 months.
I chose Southwest because I like the chart on it, and it has strong fundamentals supporting it as well.
Let's FlySouthwest Airlines reported yesterday and it was positive numbers, but still in this triangle on the daily and weekly, we see an expansion of this broad formation of the Weekly chart that I had drawn earlier this year but,that downtrend that was almost two years was the point of reverse and to the upside. let's watch if this get back to $50 range our mid target is $47.05 and let's see if that becomes support and not resistance than lets see how high this goes. $Ual just doing nothing just stuck here let's go to Delta Airlines $dal same here how about Jetblue $JBLU same watch this it is reporting Tuesday. Spirit Air $Save just doing nothing. and American airlines SAVE JBLU DAL $ AAL not much action UAL
Show the airlines some LUV, earnings contrarian playSouthwest airlines LUV earnings surprise this morning. Forecast was -$2.35, but it wound up being -$1.99, which is a step in the right direction. Because the market is a leading indicator, don't be surprised if LUV shares are up today. Ok so you may ask yourself, when is the right time to get back into this sector? Well, nobody knows, but my thesis here will be based on price to book value compared to other competitors in the airline industry. Book value is calculated as the difference between a company's total assets and total liabilities.
Delta Air Lines's pb Ratio is 5.98
pb Ratio of JetBlue Airways is 0.81
pb Ratio of United Airlines 1.48
American Airlines pb Ratio -$6.23
Southwest Airlines pb Ratio 2.17
As you may have heard, unless you're living under a rock on a deserted island, today is the day for a decision on covid stimulus negotiations. I think that since LUV pb Ratio at 2.17 is a fair entry point. And it also gives you a head start in case there is positive news on a stimulus deal. On the flip side, I don't expect LUV to have much downside from this price point of $40ish since it's already been beat up so much since March / April lows. Good luck and happy trading friends...
$LUV - Elliot Wave Theory- Wave 5 Push to Price Target of $42+ Follow me for MORE PICKS!
Welcome to Tony's Picks
I enjoy analyzing charts and have come across this interesting idea that I would like to share for discussion.
After our March - May crash I spot a quick trend to completion followed by a typical zig zag (5-3-5) counter trend. If this idea proves true I see us continue another trendy move and enter a long wave 5 in orange and wave 3 in black. Seems like this could be a long wide wave as airlines try their best to recover from our recent lows. With talk of stimulus and airline bailout plus southwest having a notoriously conservative balance sheet I see Southwest getting back to normal quicker than their competition. Personally will be looking to DCA over the next couple of months.
***At time of writing this post I DO own shares of Southwest ($LUV)***
Curious if there are any thoughts and/or comments, I read all feedback!
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(Disclaimer: I am not a financial advisor and this is not investment advice, this is my opinion only and is solely for entertainment purposes)
Long Swing Trade | Ascending Traingle BreakoutPossible breakout of an ascending triangle pattern and of the daily 200EMA
Expecting price to retest the uptrending support and then bounce back for the breakout
Waiting for a more clear bullish crossing of the MACD, for a bullish EMA crossing and for over-the-average volumes
LUV is showing strength amongst it's peersLUV is not selling off at the 200 sma. It is finding buyers and price action shows me that it is gaining strength while other airlines are struggling. This along with great fundamentals and recent news of EXPANDING into O'hare in Chicago and George Bush airport in Houston tells me they are taking this opportunity take market share from AA and UAH who are currently begging for gov't assistance. I've charted in the possible resistance (purple box) areas and supports (yellow box). Also the red trend lines can also act as resistance and support. I've plotted possible take profit areas and a break down under the diagonal line it is currently sitting on/around could be a sell signal. Hidden bullish divergence is also showing on the daily MACD. I strongly believe LUV will reach all time highs within time. If it breaks $67 my long term target would be around $110. PEOPLE WILL ALWAYS NEED TO FLY! Quality of life will outweigh fear.
