ALK finds buyers again around 61.68
Alaska Air Group Inc. (ALK) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
ALK finished the week 1.83% higher at 62.39 after losing $0.25 (-0.4%) today, but still slightly outperforming the S&P 500 (-0.58%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ALK as at May 17, 2019):
Friday's trading range has been $1.52 (2.45%), that's slightly above the last trading month's daily average range of $1.36. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ALK.
Prices are trading close to the key technical support level at 61.42 (S1). Prices are trading close to the key technical resistance level at 63.26 (R1). After having been unable to move lower than 61.60 in the previous session, the share found buyers again around the same price level today at 61.68. The last time this happened on Monday, ALK gained 2.08% on the following trading day.
While Alaska Air is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to May's high at 63.26, upside momentum could accelerate should the stock mark new highs for the month.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Alaska Air. Out of 534 times, ALK closed higher 53.37% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 61.61% with an average market move of 1.49%.