Technical Setup: SOUTHWEST AIRLINES CO Appears Poised for a Breakout.

A possible breakout setup was detected on SOUTHWEST AIRLINES CO (NYSE:LUV) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:LUV.

In-Depth Technical Analysis of NYSE:LUV

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

We assign a technical rating of 9 out of 10 to LUV. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, LUV is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, LUV did better than 71% of all other stocks.
• LUV is an average performer in the Passenger Airlines industry, it outperforms 65% of 24 stocks in the same industry.
• LUV is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so LUV is lagging the market.
• In the last month LUV has a been trading in the 28.36 - 32.20 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Check the latest full technical report of LUV for a complete technical analysis.

How does the Setup look for NYSE:LUV

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:LUV is 9:

Besides having an excellent technical rating, LUV also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 31.00. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 29.24, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NYSE:LUV?

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

More breakout setups can be found in our Breakout screener.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.