12/20/2018 |

TrendSpider Thursday Analysis: Airline Update

Every Thursday, we perform an analysis of three tickers that are looking interesting into the end of the trading week. It is important to always remember using multiple time frames is the best approach to seeing the entire picture and in these charts, we use some of the weekly trendline and indicator overlays on the daily candle chart to get a full picture of what is going on for the airline industry into 2019. 

DAL: 

Written Analysis

The first chart to take a look at is Delta Airlines. This has been on a wild roller coaster with very sharp areas of price reversals near the upper and lower weekly Bollinger Bands (R) that have been overlaid on the daily chart. Notice the lower indicator pattern also starting to setup here as price has bounced hard out of this area the last two times. It is VERY important to remember that these repeating patterns do not go on forever and once there is a status quo change in the market, these “predictable” patterns no longer act the same as before. 


LUV:

Written Analysis

Southwest Airlines looks very different than Delta’s daily price chart with a huge falling wedge in place. The price is currently respecting the 1.618 Fib level which has been tested twice now. The weekly RSI is showing oversold conditions but the MACD shows a recent bearish cross with the MACD failing to move above the zero line on its last move up. The falling wedge support below will be the next area to watch if this Fib level fails. 


UAL:

Written Analysis

United Airlines is holding at a crucial level in the middle of this larger price channel shown by the blue support and resistance trendlines. The price is respecting the weekly Fib levels which are coinciding perfectly with the black trendline support. If these levels start breaking down, a larger move to test channel support below could be quickly on the way. On the lower indicator side of things, the MACD is attempting to curl here with the RSI also getting oversold to the point where this has signaled reversals in the past. However, as the status quo has clearly changed in the market, these lower indicators may easily start to false signal. 


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REMEMBER: These are charts that have interesting technical setups based on automated technical indicator analysis included. Charts and analysis provided for educational reasons only. TRENDSPIDER IS A CHART ANALYSIS PLATFORM. IT IS NOT INTENDED TO BE TRADING OR INVESTING ADVICE. ALWAYS DO YOUR OWN DUE DILIGENCE USING MULTIPLE SOURCES OF INFORMATION AND/OR SEEK THE ADVICE OF A LICENSED PROFESSIONAL BEFORE TRADING OR INVESTING. Please read our full risk disclaimer on our website by clicking here.