SOUTHWEST AIRLINES CO (LUV) Stock Technical Analysis
USA - New York Stock Exchange - NYSE:LUV - US8447411088 - Common Stock
Taking everything into account, LUV scores 9 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, LUV is showing a nice and steady performance.
LUV has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 41.27, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.
- A Pocket Pivot is a price/volume accumulation pattern. A Pocket Pivot occurs when price moves up with volume higher than the maximum down volume registered in the previous 10 days.
More info and screens
24.80
When analyzing the support we can see 5 important areas.
- A support zone ranging from 40.72 to 41.27. This zone is formed by a combination of multiple trend lines in multiple time frames.
- Support @31.89 from a trend line in the weekly time frame.
- Support @31.15 from a trend line in the daily time frame.
- Support @29.06 from a horizontal line in the daily time frame.
- Support @25.05 from a horizontal line in the weekly time frame.
We found 1 important resistance area.
- Resistance @42.25 from a horizontal line in the daily time frame.
The Technical Rating and Setup analysis above combine different indicators and trends in different timeframes. Individual signals from indicators may give more contradictive signals and should always be interpreted in the more global context.
| Indicator | Value | Signal | Comment |
|---|---|---|---|
| ChartMill Long Term Trend Indicator | UP | POSITIVE | The long term trend for LUV is up. |
| ChartMill Short Term Trend Indicator | UP | POSITIVE | The short term trend for LUV is up. |
| ChartMill Relative Strength | 86.14 | POSITIVE | LUV has a high relative strength, it outperformed 86.14% off all stocks on the market. |
| Simple Moving Average/SMA (20) | UP | POSITIVE | The current price of LUV is above the rising SMA(20). |
| Simple Moving Average/SMA (50) | UP | POSITIVE | The current price of LUV is above the rising SMA(50). |
| Simple Moving Average/SMA (200) | UP | POSITIVE | The current price of LUV is above the rising SMA(200). |
| Relative Strength Index/RSI (14) | 68.41 | NEUTRAL | The RSI value for LUV is a neutral value. |
| Moving Average Convergence Divergence/MACD (12, 26, 9) | -0.03 | NEGATIVE | The MACD value suggests LUV has a negative trend. |
| Stochastics (14,3) | 71.6 | NEUTRAL | The Stochastics value for LUV is a neutral value. |
| Average True Range in percent/ATR (20) | 2.88 | MEDIUM VOLATILITY | The ATR as a percentage value for LUV suggests some volalility. |
| Average Directional Index/ADX (14) | 43.34 | POSITIVE | The high ADX value value for LUV suggests a strong trend. |
Important!: this is just an example which is fully automatically generated based on the analysis above and should in no way be interpreted as a suggestion. Always make your own analysis and determine your own entry and exit points.
| ENTRY | EXIT | DISTANCE | CAPITAL |
|---|---|---|---|
| 42.26 | 40.71 | 1.55 (3.67%) | 25.00% |
| An entry @42.26. This is a Buy Stop order right above the resistance zone. | An exit @40.71. This is a Stop Loss order right below the support zone. | The trade has a worst case loss of 1.55 points, which is 3.67%. | For a 0.92% total portfolio risk, you can invest 25.00% of your capital in this trade. |
- The distance between exit and entry is rather small compared to the average daily movement of LUV. Please evaluate whether better entry and exit points can be found.
- The generated setup is based on the nearest support and resistance areas. If you are looking for a more long term trade, probably a wider stop is advisable.
- This trade setup was generated fully automatically and should not be interpreted as trading advice. Always check the related news for upcoming earnings or other events. Make your own analysis and trade at your own responsibility.
41.28
-0.2 (-0.48%)
SOUTHWEST AIRLINES CO / LUV FAQ
Can you provide the ChartMill technical rating for SOUTHWEST AIRLINES CO?
ChartMill assigns a technical rating of 9 / 10 to LUV.
What is the trend direction for LUV stock?
The current trend direction for SOUTHWEST AIRLINES CO (LUV) is Bullish.
What is the RSI signal for LUV stock?
SOUTHWEST AIRLINES CO (LUV) has an RSI value of 68.4081. This indicates that the stock is currently neutral.
What is the short term momentum for LUV stock?
The short term momentum for SOUTHWEST AIRLINES CO (LUV) is positive.
What is the support and resistance level for LUV stock?
SOUTHWEST AIRLINES CO (LUV) has a support level at 41.27 and a resistance level at 42.25. Check the full technical report for our detailed analysis of LUV support and resistance levels.