Evaluation of Southwest Airlines Company stock downgraded after the last trading session.
(Updated on Dec 01, 2023)
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Given the current short-term trend, the stock is expected to fall -18.61% during the next 3 months and, with a 90% probability hold a price between $16.33 and $21.72 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.
LUV Signals & Forecast
The Southwest Airlines Company stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $25.20 and $24.19. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, October 31, 2023, and so far it has risen 20.06%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal.
Support, Risk & Stop-loss for Southwest Airlines Company stock
On the downside, the stock finds support just below today's level from accumulated volume at $24.29 and $23.16. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Southwest Airlines Company finds support just below today's level at $24.29. If this is broken, then the next support from accumulated volume will be at $23.16 and $22.23.
This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $1.15 between high and low, or 4.50%. For the last week, the stock has had daily average volatility of 2.83%.
The Southwest Airlines Company stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought and the RSI is still moving upwards. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely, and it is of great importance that the stock manages to break the trend before that occurs.
Our recommended stop-loss: $25.44 (-4.68%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 76 and this increases the risk substantially. There is a buy signal from a pivot bottom found 22 days ago.)
Trading Expectations (LUV) For The Upcoming Trading Day Of Monday 4th
For the upcoming trading day on Monday, 4th we expect Southwest Airlines Company to open at $26.31, and during the day (based on 14 day Average True Range), to move between $25.95 and $27.43, which gives a possible trading interval of +/-$0.737 (+/-2.76%) up or down from last closing price. If Southwest Airlines Company takes out the full calculated possible swing range there will be an estimated 5.52% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $26.81 (0.45%) than the support at $24.29 (8.99%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.
Is Southwest Airlines Company stock A Buy?
Southwest Airlines Company holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.
Current score: 0.000 Open Broker Account
Zero in score indicates that our system is expecting high volatility and risk for the following trading day. Given the latest developments, we cannot determine the next direction as it may go both ways.Hold/Accumulate Downgraded
Predicted Opening Price for Southwest Airlines Company of Monday, December 4, 2023
The predicted opening price is based on yesterday's movements between high, low, and closing price.
|Fair opening price December 4, 2023||Current price|
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Fibonacci Support & Resistance Levels
Accumulated Volume Support & Resistance Levels
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