Airline Stocks Fly On Oil Pullback

All of the major airline stocks are trading higher this morning on the back of declining oil prices. Since mid-February most of the major airline stocks have come under sharp selling pressure as oil began to climb higher by nearly 30.0 percent. The Guggenheim Airline ETF (NYSE:FAA) is trading higher this morning by 0.55 cents to $34.94 a share.

Delta Air Lines Inc. (NYSE:DAL) is one of the leading stocks in the commercial airline sector. This company has a fair amount of exposure to Japan after it’s merger with Northwest Airlines. Delta stock is trading higher by 0.62 cents to $10.05 a share. This stock will have intra-day resistance around the $10.25 and $10.60 levels.

United Continental Holdings Inc. (NYSE:UAL) is trading higher by $1.14 to $21.66 a share. This stock recaptured the important $20.00 support level on the daily chart yesterday, which shows that the stock was being defended by the institutions. Today UAL stock will have intra-day resistance around the $22.00 area.

AMR Corp. (NYSE:AMR) is another leading airline stock that has come under pressure since early January 2011. This morning AMR stock is trying to recapture the $6.00 level which was an important breakdown point for the stock. AMR stock is trading higher by 0.20 cents to $5.98 a share. The stock will have intra-day resistance around the $6.00 level and more at $6.20.

Traders and investors that playing the airline stocks must keep one eye on oil prices at all times. Should another oil producing nation begin having protests or conflict oil could easily spike higher again causing another decline in the commercial airline sector.

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About Nicholas Santiago 576 Articles


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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