Southwest Airlines Co. : Continuation of the bullish trend
Entry price | Target | Stop-loss | Potential |
---|
$22.46 |
$24 |
$22.3 |
+6.86% |
---|
Southwest Airlines is trading in a bullish trend and several arguments are in favor of the continuation of this trend.
The economic and financial situation of the company are strong and offer a good visibility. Estimated sales from Thomson Reuters consensus are encouraging. During the past 12 months, earnings estimates for 2014 has been revised from USD 1.23 to USD 1.37.
Technically, the security is in an uptrend on all time scales and it is supported by moving averages. The bullish trend will not be stopped until prices are above the USD 21.4 short term support. This trend should allow the stock to reach the top of the trendline around USD 24 after a crossing of USD 22.7.
In consequence, investors can take a long position in Southwest Airlines on a breakout of USD 22.7 with a target price at USD 24. A stop loss will be set below the entry point.
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