Tuesday, February 9, 2010

Airline stocks

As you readers might already know, the airline stocks had a huge day today, mostly due to bullish reports from UAUA. Digging around a little, I came to know that quite a few analysts have also turned bullish on the sector recently. So, I figured it might be worth our while to have a look at the sector and the major airline stocks. And I must add, I like what I see!!

Let's start with the airline index $XAL. Massive day today as you can see. It broke through the MA(50) and MA(20) with ease. A nice double bottom had been formed with a positive MACD divergence.

UAUA - Important break of resistance at 14 on massive volume. A close near the high of the day means its quite probable to run some more.

LCC - The one that I had posted about late Sunday and was in going into today. Extremely nice volume pattern. The upside over 6 took it to 52 week highs, which means it certainly has room to run.

DAL - A nice bounce off MA(50), again on impressive volume.

AMR - An even more impressive bounce off MA(50). Again, great volume. Watch out for a break of 8.50.

Its certainly nice to find all these impressive bullish charts so easily when a lot of charts out there have been spoilt by the recent action. Shows the benefit of keeping an eye on individual sectors.

For the daily review, and the important support and resistance levels on the S&P, please see here.

Take care and good luck tomorrow. Stay warm!

No comments: