JETS 7 Year Resistance

This is a very simple chart to read. Airlines hitting a 7-year resistance trendline.

Airlines are very capital-intensive and would greatly benefit from rate cuts.

Despite inflation pricing power has not risen sufficiently even nominally.

Oil has not helped their situation.

We have seen many airlines go bankrupt, close shop, and reduce capacity. This indirectly helps the major airlines as the industry cleanses.

A lot of talk of mergers and buyouts. For example, Frontier wants to merge with Spirit, Jetblue & United, and Southwest Pilot union seeking merger attorneys. Streamlining is always a good thing which is why JETS has risen as much as it has.

However, this may be it according to the chart. The next move could be down from here. Airlines are very economically sensitive and a recession would hit them hard.