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Possible Bullish Inside Day Candle Pattern Detected for Southwest Airlines (NYSE:LUV)

By Amy Schwartz

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Southwest Airlines (NYSE:LUV) based on the price action in the company's shares. Yesterday's price range of $41.31 and $42.24 is within the prior day's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Traders and investors interested in shares of Southwest Airlines may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

Southwest Airlines has overhead space with shares priced $41.56, or 22.0% below the average consensus analyst price target of $53.29. Southwest Airlines shares should first meet resistance at the 200-day moving average (MA) of $41.68 and find additional resistance at the 50-day MA of $44.17.

In the past 52 weeks, Southwest Airlines share prices have been bracketed by a low of $31.36 and a high of $51.34 and closed yesterday at $41.56, 33% above that low price. Over the last five market days, the 200-day moving average (MA) has gone up 0.4% while the 50-day MA has advanced 0.4%.

Southwest Airlines Co. is a domestic airline that provides primarily short-haul, high-frequency, point-to-point service. The Company offers flights throughout the United States.

SmarTrend recommended that its subscribers protect gains by selling shares of Southwest Airlines on April 29th, 2016 by issuing a Downtrend alert when the shares were trading at $44.05. Since that call, shares of Southwest Airlines have fallen 5.7%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish am inside day candle Southwest Airlines

Ticker(s): LUV