0L8F trade ideas
Southwest Airlines; Are the Bulls Ready to LUV this Stock?✨ We provide charts every day ✨
Like and Follow to help us grow family! 🎉
---
Hey gang! Let's take a look at Southwest Airlines to see if it can pull out of this tailspin. The LUV chart looks like hot trash on a southwest sidewalk right now, but we are slamming up against some major support, which might give this dead cat wings.
---
1. Fractal Trend is showing a downtrend (Red background color) for LUV on the daily chart.
2. With this setup, we want to take short positions when Fractal Trend signals a downtrend AND then Breakaway Scalper signals a short entry in the downtrend by showing a Red bar color.
3. You see from the above logic that LUV has been a great short during COVID. That said, it seems unlikely this stock will just go down forever, so we want to look for support and a reason to shed our short bias.
4. The first level to watch is the bullish orderblock at S1. S1 support is one of the last major supports before we hit the 2010 - 2013 range at S3. So it is one of those situations where it's "either we bounce here, or it's a long way down).
5. If this short signal does let up, and if the uptrend can continue at some point, we will be looking for a reaction at the bearish order blocks at R1 and R2 resistance.
LUV Long, not as bad as current priceHello,
Buying some LUV here.
It actually did okay in earnings through COVID. The airline is national which will pick up quicker than international airlines.
Analyst consensus currently is at around $40 which is about a 40% increase from the current price.
Price is currently at weekly support/resistance and may drop to the daily support/resistance at around $27.
Southwest Airlines Co. (LUV) Falling Wedge Reversal PatternThis is called Falling Wedge Reversal Pattern. That mean I should choose CALL method. But I viewed at finance yahoo, options at high volume on CALL for 5 June 2020 $28 also high volume on PUT for 5 June 2020 $24. I don't sure which is right so I post it at here. Please tell us what's your option. Thanks!
Long opportunity on LUVI believe there is a long opportunity on LUV at the 23-24$ level. This level completes the head and shoulders pattern and is also a previous all time high set in OCT 2001. Old resistance tends to becomes support so i'll be looking for this play and i believe there will be lots of buy orders in that area driving prices up. Targets will be around 31-35$ to take profit which would be a 35-50% gain. If these levels are broken i expect a move up to 46-50$ in the long run. Good luck!
$LUV severely oversold.Smart investors already knew Buffett sold. Retail traders selling on news. Shorts going to get murdered. $LUV is sitting on a stockpile of cash, significantly reduced their daily cash burn, and flights already starting to pick up. Southwest is positioned to gain market share with their attractive debt to equity position, relative to the other airliners. I'm long at an average of $28.96 after averaging down at $26.50.
LUV Hourly/Daily ViewExpecting the bearish triangle (continuation of downtrend) to break to the downside within the next few trading sessions.. Reversals so happen but the bounces have been small and the buyers should lose the tug-of-war soon - just have to see what the market gives us and wait for entry and confirmation.
LUV: Diamond in the rough and investing opportunitySince my AAL technical analysis, I thought about airlines for a little while. Which company would I feel the most comfortable and proud to invest in? Maybe it's because I'm from Dallas, but LUV has always been a company that, to me, has had the customer as the #1 priority as well as taking care of its workers.
As with all the airlines, LUV stock price took a huge hit from the shelter-in-place policies after coronavirus. It's stock pattern is basically the same as the other airlines, including DAL, the highest grossing airline company out there. However, the key is how healthy LUV was coming into this crisis. LUV announced that it had the lowest amount of debt it has ever had in its history before the coronavirus hit. They have a huge war chest and great balance sheet.
Right now, there are alot of talks of bailouts for airlines. Because how could we let airlines fail? How will we travel? So we shouldn't be surprised if more government money is injected into the airline industry. However, we should consider what that money may mean for the companies. Their bottom line would not get better. This is still a loan that has to be paid back. Just because a company is bailed out doesn't mean customers will start coming back. I expect that many will be wary to fly even when flights start to reopen. So, out of all the airlines, the one with the lowest debt-to-capital ratio will likely be in the best position to recover.
I expect other major airlines to cut services and layoff workers while charging more fees to cover costs. However, I do not see LUV following suit. It's not their MO. I think LUV will use the federal money (PSP) to support their workers first without the execs giving themselves bonuses.
But I do technical chart analyses. What do they say right now? LUV just reported it's earnings which was a surprise to the upside. As such, the buying increased TREMENDOUSLY, even more than the bottom after the initial corona drop. The accumulation is HUGELY diverging to the upside now with an RSI that has been diverging since Feb 27. Compare this to DAL, who had a less favorable earnings report. They've remained FLAT with a still declining accumulation/distribution associated with more selling than buying.
If you made 1,000% trading TSLA, AMZN or some other meme stock options, I would consider locking up your profits by buying LUV rather than dumping it back into risky options. You will still make alot of money (potentially 100% if LUV reaches pre-corona levels) and you can feel good about investing in a company that values people over profit. I will be buying a mix of stocks and long-term options going forward.
LUV EXPLOSION TOMORROW GUARANTEEDi have no idea where this is going. never seen a stock go red to green so many times in one day. just thought it would be funny to post an aggressive claim with no evidence. Bullish. I guess???
In reality, hoping to see 33 tomorrow so I can drop this as fast as possible. Not holding over the weekend unless air travel miraculously becomes abundant in the next 12 hours.
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
