2 Airline Stocks To Watch That Have Been In A Strong Uptrend All Year
Below is a technical analysis of each of the charts.
Delta Daily Chart Analysis: The daily chart above on delta shows the stock has been uptrending throughout the year and may be forming into what technical traders would call an ascending triangle pattern.
The potential support area can be drawn on the chart by connecting the lows together with a line. The stock has struggled to cross below this line and may find support here again in the future. A cross below this line may indicate a trend change is coming.
The stock has shown more recent resistance near the $50 level, as the stock has attempted and failed to cross above this area.
The higher lows building up to this resistance line is what traders would call an ascending triangle pattern. This bullish continuation pattern could let the stock move higher if the pattern is confirmed.
Southwest Daily Chart Analysis: The daily chart above shows Southwest has also been in a strong uptrend throughout the year.
Connecting the lows on the chart shows the stock has been in an uptrend and been able to find support along the line many times throughout the year. This line may be able to hold as support again sometime in the future.
What’s Next? Both stocks are trading above the 200-day moving average (blue), indicating the stocks have had bullish sentiment throughout the past year. The indicator may hold as a support.
Bullish traders would like to see the stocks continue to build higher lows and keep moving higher. A break above resistance on Delta may cause the stock see a stronger bullish push.
Bearish traders would like to see the stocks stop forming higher lows and break below the line that connects the lows. This may bring about a change in trend and the stocks may start downtrending if this were to happen.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.