Optimism for increased travel due to the ramp-up in vaccines caused shares of American Airlines Group Inc AAL, Southwest Airlines LUV and Boeing BA to make bullish moves late last week.
Benzinga covered the three airlines on May 9, and each looks primed for bullish continuation in the week ahead.
Traders hoping to catch a larger move in the sector could also watch the U.S. Global Jets ETF JETS. American Airlines, Southwest Airlines, Delta Air Lines Inc DAL and United Airlines Holdings Inc UAL make up a combined 42% of Jets ETF’s holdings. If there’s continued momentum in individual airlines this week, Jets could offer a way to play it.
The Jets Chart: On Friday, Jets’ price attempted to break above resistance at $26.34 but rejected and wicked off it. Jets has attempted to break through this resistance level nine times out of the last 14 trading days. When time a stock or ETF touches a resistance or support zone, the level weakens, making it easier for the price to bust through.
Although Jets closed the trading session just under resistance at $26.28, it shot up 3.91% on the day, and printed a bullish green engulfing candle stick, which indicates higher prices could be in the cards for Monday.
See also: How to Buy American Airlines (AAL) Stock
Also on Friday, Jets was able to regain the eight-day and 21-day exponential moving averages (EMAs) as support, which is bullish. The eight-day EMA is trending below the 21-day EMA, and bulls will want to see the eight-day EMA cross above the 21-day EMA for more confidence.
Bulls want to see Jets break up above its resistance at $26.34 and for continued bullish volume in the ETF. If Jets can break above its overhead resistance, it has room to move up toward $27.44. If it is able to regain that level as support, the ETF is clear to move toward $28.75.
Bears want to see Jets continue to reject the overhead resistance and drop back down to its support level at $24.85. If it is unable to hold that level as support, it could revisit $23.71.
Photo courtesy of Pixabay.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.