08/05/2018 |
Market Update Into 8/6: Airline Multi-Time Frame Bollinger Bands®
A prepared trader is a profitable trader, and Sunday is a great day to get ready for the week. One way to do that is by checking out one of the most powerful features on TrendSpider, Multi-Time Frame Bollinger Band (R) Analysis. This week we are focusing on the airline industry as there have been some big post-ER moves to watch!
Below are three key airline stocks representing parts of the broad markets that we have analyzed and identified interesting trendline/Bollinger Band (R) setups. Based on the current charts, we are watching for a short-term reversal possible in the coming weeks.
Ticker #1: $DAL
- Price closed right at resistance on Friday with the daily SMA (20) as support below around $52.50.
- The shorter-term time frame (60 minutes) is still in an upward channel for now with the SMA on both the 60 and 120 minute acting as support currently.
- If price breaks down through these two moving averages on the bottom chart, watch for a test of the channel support below around $53.25.
Ticker #2: $UAL
- The 240-minute candle has been trading in a very narrow range over the last 15 or so sessions. The daily Bollinger Band (R) is resistance above and the previous resistance is now acting as support below.
- The shorter-term time frame (60-minute candle) is trading in an upward slowing channel currently with price-finding resistance right at the 120-minute upper Bollinger Band (R).
- The hourly EMA (50) and the 2-hour SMA (20) are both acting as strong areas of support below.
Ticker #3: $LUV
- The 240-minute candle is currently moving up strong with the daily upper Bollinger Band (R) as the next level of resistance to watch above.
- If price starts to reverse, the daily SMA (20) is the level to watch below.
- The weekly candle for Southwest Airlines is looking bearish with a perfect touch of the EMA (50) below with a hard bounce off.
