Don't Ignore This Chart!

Delta and SouthWest Go For Breakouts


Airline stocks are on the move Monday with nice gains across the board. Hawaiian Airlines (HA) and Skywest (SKYW) are leading the way with breakouts and 52-week highs today. These two have the highest StockCharts Technical Rank (SCTR) of the group and are clearly the strongest of the pack. There are also a few interesting chart patterns at work and today we will look at Delta and SouthWest. The first chart shows DAL surging from October to January and then correcting with a falling channel into July. DAL broke out of channel in August and showed improved relative strength as the SCTR moved back above 70. The stock is currently above the 50-day and 200-day moving averages, and is challenging the August-September highs.   


The second chart shows LUV breaking a trend line with a strong advance in July-August. The stock then consolidated with a triangle into October and broke the upper trend line with a surge the last two days. This move also put LUV back above its 200-day moving average. The StockCharts Technical Rank (SCTR) improved in August and has been largely above 50 the last two months. 

Here are some other airline stocks you might want to check out. 
Thanks for tuning in and have a good day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at 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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