Republic Airways Is Fit to Fly

Shares of Republic Airways RJET are trading higher on the session by 1.82%, trading at $3.91. The stock has been consolidating above the 20-day and 50-day moving averages for the past six weeks following a massive spike higher on November 8th. Republic Airways could easily test the November high of $4.78 on a break through the $4.12 area. Perhaps more importantly, on a longer-term basis, shares are formed a solid bottom. This sets the stock up for a multi-month trade higher where dips are to be bought. Note that the stock still has 17.44% short interest. While this ultimately will add some fuel to the fire on a break, the shorts are in there for a reason. Given the lack of option strikes, the best way to play Republic Airways is likely in the common stock. Traders can look to get long here with a stop below the 20-day average. If shares were to rise, break, and subsequently hold above $4.12, adding to the position is smart. If shares break the 20-day, you can try to reenter on a test of the 50-day (~$3.50). Republic Airways Holdings Inc. is an airline holding company that owns Chautauqua Airlines, Frontier Airlines, Republic Airlines and Shuttle America.