LUV closes higher for the 5th day in a row


Southwest Airlines Company (LUV) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team

Highlights

LUV breaks above 20-day moving average for the first time since February 20th
LUV closes higher for the 5th day in a row
LUV closes within previous day's range

Overview

Moving higher for the 5th day in a row, LUV finished Thursday at 41.23 gaining $1.83 (4.64%), significantly underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.

Daily Candlestick Chart (LUV as at Mar 26, 2020):

Daily technical analysis candlestick chart for Southwest Airlines Company (LUV) as at Mar 26, 2020

Thursday's trading range has been $3.50 (8.56%), that's slightly below the last trading month's daily average range of $3.72. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LUV.

Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Shooting Star. The last time a Bullish Spinning Top showed up on March 10th, LUV actually lost -6.74% on the following trading day.

The share managed to close above the 20-day moving average at 40.55 for the first time since February 20th. Prices are trading close to the key technical resistance level at 44.34 (R1).

Although the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.

Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Southwest Airlines. Out of 43 times, LUV closed higher 67.44% 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 60.47% with an average market move of 1.42%.


Market Conditions for LUV as at Mar 26, 2020

Loading Market Conditions for LUV (Southwest Airlines Company)...
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