Southwest Airlines Co. (LUV)

Purchase Info

Stock Price History

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Our View

Southwest Airlines Co. (LUV) Southwest Airlines is the world’s largest low-cost carrier airline. It is a pioneer of the concept of low-cost airlines. Having survived the pandemic, Southwest is still the most significant domestic carrier in the US and operates 700 aircraft. It benefits from a point-to-point network that allows the company to be flexible and adapt to changing situations. Southwest specializes in domestic leisure travel, which is poised to bounce back in a big way. Therefore, the longer-term growth prospects of Southwest Airlines look positive.

The long-term monthly chart of Southwest shows phases of uptrends as well as sideways movements. The period from 2012 to 2017 saw the price go up more than 7X. That growth was then followed by three years of range-bound activity before the price crashed below the bottom of the long-term trend in March 2020. The price recovered by 2021 and re-tested the previous high zone of $64. The outbreak caused by the delta variant resulted in the price falling back to the bottom trend line. The $47 level has been an important one, acting as resistance in 2015 and 2016 and then as support throughout the sideways phase. The $47 level is now working as support again. Therefore, the price is likely to reverse and re-test the $64 levels. A stop-loss can be placed below the bottom trend line at $45.

Position entered into our long-term tracking portfolio today. The entry point is at $50.73, and stop-loss is placed at $36.93, which is 27% below the entry point. The short-term to medium-term take profit at the top of the trend is set at $60.26 giving a profit of 20%.

Data Explained

On the video and images above you will see the reason this stock was selected.

You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.

Once it is time to move the original stop loss up you will see an additional image.

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