- Southwest Airlines Stock (NYSE: LUV) is down by about 8.78% on a monthly basis.
- LUV stock price hit a fresh 52 week low at $28.95.
- Southwest Airlines stock price trading below 50 and 200 day EMA showcase downtrend.
Southwest Airlines stock price is down by 8.78% on a monthly basis and is forming a double bottom pattern. LUV stock price hit a fresh 52 week low at $28.95 and formed a bullish hammer candle pattern, which created hope for the bullish trend reversal. However, the confirmation of trend reversal will only come when the bulls are able to regain the price above the 50 day EMA.
Southwest Airlines stock price (NYSE: LUV) closed the previous session at $30.63 with an intraday rise of 1.59%, and market capitalization stands at $18.20 billion. At the beginning of January, LUV stock price took a U-turn from its demand zone and gave a sharp bounce with higher volume. The bulls later managed to push the price above the 50 day EMA and turned the short term trend in the upward direction.
LUV stock price consolidated for a few weeks in the narrow range between $34.00 to $38.00 with the hope of an upside range expansion. However, prices struggled to break the higher range and it took the opposite direction.
Will Southwest Airlines Stock Price Rebound?
Southwest Airlines stock price (NYSE: LUV) broke the lower range support at $34.00 and began to decline by forming lower lows candle pattern. At the beginning of March, the overall financial market witnessed massive selloff across all the sectors. It negatively impacted the LUV stock price and it ended up hitting a fresh 52 week low. However, the stock price did not collapse and got stuck in the narrow range consolidation.
Technical analysis suggests LUV stock price is in a bear grip and the probability of sharp rebound is low. On the other hand, if the price drops below $28.00 it will surely create concerns for the long term investors.
LUV Stock Price Formed Double Bottom
LUV stock price formed a double bottom pattern but the confirmation of trend reversal still awaited. The buying volume is on the rise and indicates that buyers are trying to defend the recent low. However, the prices are in downtrend and do not show any strong signs of reversal. Technical indicators like MACD reversing upward might generate a positive crossover, meaning that a relief rally is possible in the coming days. The RSI at 40 sloping north denotes prices might soon enter the neutral territory.
Conclusion
Southwest Airline stock price (NYSE: LUV) is in downtrend and any short term bounce might again get rejection from the higher levels. Technical analysis suggests LUV stock price is in a bear grip and the probability of a sharp rebound is low.
Technical levels
Resistance levels : $34.51 and $38.00
Support levels : $28.95 and $26.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/03/29/southwest-airlines-stock-luv-stock-price-hit-fresh-52-week-low/