The Chart of the Day is Southwest Airlines (LUV). I found the stock by sorting the New High list for new high frequency o the last month, then used the Flipchart feature to review the charts. Since the Trend Spotter signaled a buy on 6/19 the stock gained 25.07%.
Southwest Airlines (LUV) is a major domestic airline that provides primarily shorthaul, high-frequency, point-to-point, low-fare service. Southwest operates over Boeing 737 aircraft in numerous cities. Southwest has the lowest operating cost structure in the domestic airline industry and consistently offers the lowest and simplest fares. Southwest also has one of the best overall Customer Service records.
Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.
Barchart technical indicators:
- 96% Barchart technical buy signals
- Trend Spotter buy signal
- Above its 20, 50 and 100 day moving averages
- 17 new highs and up 18.01% in the last month
- Relative Strength Index 80.02%
- Barchart computes a technical support level at 32.99
- Recently traded at 33.87 with a 50 day moving average of 29.80
Fundamental factors:
- Market Cap $23.43 billion
- P/E 21.69
- Dividend yield .71%
- Revenue expected to grow 4.70% this year and another 5.60% next year
- Earnings estimated to increase 59.80% this year, an additional 17.90% next year and continue to increase at annual rate of 31.80% for the next 5 years
- Wall Street analysts issued 6 strong buy, 5 buy, 5 hold and 2 under perform recommendation on the stock
Airlines fly high in good time and crash in bad times. The technical trading strategy that has worked best of this stock is the 100 day moving average vs price. Use that exit point with discipline.
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