Southwest Airlines; Are the Bulls Ready to LUV this Stock?✨ We provide charts every day ✨
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Hey gang! Let's take a look at Southwest Airlines to see if it can pull out of this tailspin. The LUV chart looks like hot trash on a southwest sidewalk right now, but we are slamming up against some major support, which might give this dead cat wings.
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1. Fractal Trend is showing a downtrend (Red background color) for LUV on the daily chart.
2. With this setup, we want to take short positions when Fractal Trend signals a downtrend AND then Breakaway Scalper signals a short entry in the downtrend by showing a Red bar color.
3. You see from the above logic that LUV has been a great short during COVID. That said, it seems unlikely this stock will just go down forever, so we want to look for support and a reason to shed our short bias.
4. The first level to watch is the bullish orderblock at S1. S1 support is one of the last major supports before we hit the 2010 - 2013 range at S3. So it is one of those situations where it's "either we bounce here, or it's a long way down).
5. If this short signal does let up, and if the uptrend can continue at some point, we will be looking for a reaction at the bearish order blocks at R1 and R2 resistance.
