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LUV Forges Bear Trap with Failed Support Break

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Southwest Airlines (LUV) broke support with high volume in late April, but quickly recovered this support break with a surge back above 11.60 the last few days. Despite this quick recovery, signs of indecision are showing with the upper shadows in the candlesticks. There is a resistance zone around 11.8-12 and follow through above this level would be most positive.

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Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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