LUV finds buyers again around 40.28
Southwest Airlines Company (LUV) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, LUV ended Wednesday at 42.10 surging $1.49 (3.67%) on high volume, significantly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over three weeks. The last time we've seen such an unusually strong single-day gain on August 27th, LUV gained 3.08% on the following trading day. Today's close at 42.10 marks the highest recorded closing price since March 11th. Closing above Tuesday's high at 40.98, the stock confirmed its breakout through the prior session high after trading up to $1.90 above it intraday.
Daily Candlestick Chart (LUV as at Sep 16, 2020):
Wednesday's trading range has been $2.60 (6.42%), that's far above the last trading month's daily average range of $1.51. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LUV.
One bullish candlestick pattern matches today's price action, the White Candle.
Southwest Airlines managed to close above the 200-day moving average at 40.60 for the first time since February 24th. After having been unable to move lower than 40.10 in the previous session, the market found buyers again around the same price level today at 40.28.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 200" stand out. Its common bullish interpretation has been confirmed for Southwest Airlines. Out of 33 times, LUV closed higher 63.64% 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 eight trading days, showing a win rate of 54.55% with an average market move of 0.03%.