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

By David Diaz

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. Today's price range of $41.82 and $42.39 is within yesterday'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 Co. is a domestic airline that provides primarily short-haul, high-frequency, point-to-point service. The Company offers flights throughout the United States.

Southwest Airlines has overhead space with shares priced $42.22, or 20.8% below the average consensus analyst price target of $53.29. The stock should hit resistance at its 50-day moving average (MA) of $44.17, as well as support at its 200-day MA of $41.68.

Southwest Airlines share prices have moved between a 52-week high of $51.34 and a 52-week low of $31.36 and are now trading 35% above that low price at $42.22 per share. The 200-day and 50-day moving averages have moved 0.39% higher and 0.35% higher over the past week, respectively.

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 5.1%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish inside day candle Southwest Airlines

Ticker(s): LUV