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Possible Bearish Inside Day Candle Pattern Detected for Southwest Air (NYSE:LUV)

By David Diaz

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Southwest Air (NYSE:LUV) based on the price action in the company's shares. Today's price range of $26.08 and $26.83 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. Owners of Southwest Air may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

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

Over the past year, Southwest Air has traded in a range of $24.77 to $58.83 and is now at $26.17, 6% above that low. In the last five trading sessions, the 50-day moving average (MA) has fallen 6.7% while the 200-day MA has slid 1.3%.

There is potential upside of 159.6% for shares of Southwest Air based on a current price of $26.17 and an average consensus analyst price target of $67.94. Southwest Air shares should first meet resistance at the 50-day moving average (MA) of $34.85 and find additional resistance at the 200-day MA of $49.53.

SmarTrend is tracking the current trend status for Southwest Air and will alert subscribers who have LUV in their portfolio or watchlist when shares have changed trend direction.

Keywords: bearish inside day candle southwest air

Ticker(s): LUV