Good technical signals and a possible breakout for SOUTHWEST AIRLINES CO.

Our stock screener has identified SOUTHWEST AIRLINES CO (NYSE:LUV) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:LUV.

Technical analysis of NYSE:LUV

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to LUV. Although LUV is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• LUV is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so LUV is performing more or less in line with the market.
• In the last month LUV has a been trading in the 32.35 - 36.12 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• Looking at the yearly performance, LUV did better than 74% of all other stocks. However, this overall performance is mostly based on the strong move around 4 months ago.
• LUV is part of the Passenger Airlines industry. There are 23 other stocks in this industry, LUV did better than 45% of them.

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

Why is NYSE:LUV a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:LUV scores a 8 out of 10:

Besides having an excellent technical rating, LUV also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 34.00. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 33.55, a Stop Loss order could be placed below this zone.

Trading setups like NYSE:LUV

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

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.