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

By David Diaz

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Southwest Air (NYSE:LUV) based on the price action in the company's shares. Yesterday's price range of $24.95 and $25.73 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 Air may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

In the past 52 weeks, Southwest Air share prices have been bracketed by a low of $24.77 and a high of $58.83 and closed yesterday at $25.45, 3% above that low price. Over the last five market days, the 200-day moving average (MA) has gone down 1.1% while the 50-day MA has declined 5.6%.

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.

Potential upside of 167.0% exists for Southwest Air, based on a current level of $25.45 and analysts' average consensus price target of $67.94. The stock should run into initial resistance at its 50-day moving average (MA) of $35.24 and subsequent resistance at its 200-day MA of $49.67.

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: bullish am inside day candle southwest air

Ticker(s): LUV