Is Southwest Airlines Stock(LUV) Ready To Move Higher?

Last week, I wrote a bullish piece about airlines stocks, highlighting buys in Skywest (SKYW) and Delta Airlines (DAL) on a breakout in the Airlines Index (XAL). United Airlines (UAL) and American Airlines (AAL) looked great too.

Today, I am adding another name to that list of stocks: Southwest Airlines (LUV).

Southwest Airlines stock price has turned up nicely off a confluence of support in its up-trend line and rising 50-day average. This support provides a nice risk-reward stop level (around $46) and offers upside to a target of $58. One could also hedge with Transports Sector ETF (IYT).

I still like the original ideas in this sector; Delta Airlines (DAL) in particular looks strong.

$LUV Southwest Airlines Stock Chart

southwest airlines stock buy price forecast chart image january 22

The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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