Airlines Slump Again

The major airline stocks have declined over the past couple of months. Obviously higher oil prices will certainly hurt all of the major stocks in the sector. Let us now look at a few airlines stocks that could be nearing attractive support levels for a bounce.

AMR Corp. (NYSE:AMR) has declined sharply since early January when the stock traded as high as $8.60 a share. Today the stock is trading lower again by 0.10 cents to $6.45 a share. Swing traders can watch the $6.00 level as the next important daily chart support area. This is a level where the stock is likely to have a small short term bounce. Please remember that AMR stock is trading below it’s daily 50, and 200 moving averages which put the stock in a weak technical position.

Jetblue Airways Corp. (NASDAQ:JBLU) is another popular airline that is trading below it’s major daily chart moving averages. This puts the stock in a confirmed down trend on the charts as price has steadily declined since November 8, 2011 when it traded as high as $7.74 cents. Aggressive bottom fishers can look for a bounce in this stock around the $5.00 area.

Southwest Airlines Co. (NYSE:LUV) does not look much better on the daily chart. The stock is also trading below it’s 50, and 200 daily chart moving averages which is bearish. The stock has some minor daily chart support around the $11.50 level. However, the next important support level for LUV stock will be around the $11.00 level. This is an area where aggressive traders can look for a bounce in the stock.

About Nicholas Santiago 576 Articles

Affiliation: InTheMoneyStocks.com

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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