When evaluating the investment potential between United Airlines Holdings Inc. (UAL) and Southwest Airlines Co. (LUV), several critical factors come into play, guiding a strategic approach to buying UAL shares while considering the sale of LUV.
Reasons to Consider Buying UAL:
Attractive Valuation with Growth Potential: UAL's forward P/E of 3.74 presents a...
LUV on a 120 minute chart fell heavily on news of a looming strike by flight attendants 18 %
into a bear flag and support followed by a narrow range consolidation and a volatility
squeeze which broke on news of the settlement. I LUV Sowthwest and its travel mileage perks
and open seating. The NR7 indicator on watch was firing continuously. I am taking a long...
Southwest Airlines ( NYSE:LUV ) finds itself navigating through stormy skies as it grapples with the cascading effects of Boeing's ongoing challenges. The airline, renowned for its efficiency and customer-centric approach, has been forced to implement drastic measures, including a hiring freeze and capacity cuts, in response to disrupted aircraft deliveries from...
Southwest Airlines (LUV) reported earnings of $0.37 per share on revenue of $6.82 billion for the fourth quarter ended December 2023. The consensus earnings estimate was $0.11 per share on revenue of $6.74 billion.
LUV are in a confirmed downtrend with lower lows and lower highs. Price has made a retracement to fibonacci level 0.618, and the MACD shows divergence. Overall a good short idea
NYSE:LUV Daily:
- Climbed above the 200 DMA, with 20 and 50 DMAs aligning for further upward momentum.
- Bullish if we solidify support at the 30.16 level.
- Earnings on Jan 25 (Thurs) will be crucial to see if this uptrend is genuine or just a false breakout.
- If not sustained, we might soon retest the 27.31 low.
Note: Airlines remain a mixed bag with cost...
Fundamentals Analysis
1. NYSE:LUV announced a quarterly dividend of $0.18 per share, payable on January 6, 2024, to shareholders of record on December 20, 2023.
2. NYSE:LUV faced a regulatory action from the Federal Aviation Administration (FAA), which proposed requiring Boeing 737 operators to replace certain fan blades after a fatal incident involving a...
Today, we tagged the May 2020 COVID Lows for LUV.
Back in May 2020, Buffet sold much of his airline stocks. This added the final capitulation for airlines, marking the low for 2020. Today, we got a nice hammer candle and a bounce from that exact pricepoint.
Looking to get in with calls if we take out this hammer, with a stop below the COVID lows.
RSI is...
Analyzing the options chain and the chart patterns of LUV Southwest Airlines prior to the earnings report this week,
I would consider purchasing the 25usd strike price Calls with
an expiration date of 22024-6-21,
for a premium of approximately $2.80.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking...
Three different support lines meet at this price point for Southwest. A horizontal Channel, a down sloping channel, and a falling wedge. This seems very bullish, and a trend reversal might be imminent.
If all goes well, this should get to $39-40 in a matter of weeks, and after a little consolidation might continue towards the horizontal channel resistance at...
LUV oversold RSI but still in local downtrend, dip to 26 level/extreme trend support can still happen.
or we can see break of local trend resistance/30 then move higher after..
either way short term bottom may be in soon, boost and follow for more! thanks 💚
Fundamental Analysis
According to data released by Statista on August 29, 2023, LUV holds approximately 16.9% of the domestic market share among leading US airlines from February 2022 to January 2023. This marks the third highest percentage of market share held by a single airline in the US, indicating a significant competitive advantage.
Furthermore, the...
Southwest Airlines has been going through some turbulence with recent flight rearrangement issues, but for the most part has smoothened out all issues regarding flights. Air Travel Demand is still thriving and growing exponentially, respectively.
Southwest is a leader among a few others in Airline Stocks as they have High-Quality Management & Great Financial...
Breakout and Retest:
LUV has broken out of a channel and subsequently retested near the 32.53 gap fill. This retest indicates a possible support level, suggesting that the stock might be gearing up for a rebound.
Profit Targets:
Based on my analysis, I’ve identified two profit targets. The first one lies at 34.82, and the second at 36.90. Notably, these levels...
Daily Chart
Bullish alert and bullish Crossover with a BAD price action.
Possible breakout level to be taken with the price action of October.
On Watch for a possible topSwing
