Selling climax and capitulation occurred during period from Mar-2020 thru early Aug-2020. Covid-19 infection rates were shifting into acceleration mode and an effective vaccine had yet to be developed/approved. Economic conditions were deteriorating and the airline industry was barely "hanging by a thread". So what's different? Global economic recovery and loosening of TSA restrictions and CDC guidelines are a relief to both businesses and consumers.
That's the fundamental story undergirding this price action in LUV. Technically speaking, LUV is undergoing a consolidation phase which began @ 3 months ago. This weekly chart shows a classic cup-with-handle pattern and typically is followed by a breakout to new highs or, at the very least, a high probability to test prior resistance levels @ 65-67 price levels.
This creates a short-term trading opportunity or potential for an extended run for more patient investors who subscribe to the economic recovery investment thesis.
Signing off....
J Clinton Hill
TechnicallyMacro.com
That's the fundamental story undergirding this price action in LUV. Technically speaking, LUV is undergoing a consolidation phase which began @ 3 months ago. This weekly chart shows a classic cup-with-handle pattern and typically is followed by a breakout to new highs or, at the very least, a high probability to test prior resistance levels @ 65-67 price levels.
This creates a short-term trading opportunity or potential for an extended run for more patient investors who subscribe to the economic recovery investment thesis.
Signing off....
J Clinton Hill
TechnicallyMacro.com
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.