Airline stocks are moving into the fall months with a lot to prove, from a time and price perspective (looking at the charts) as well as a business perspective (as pandemic news continues).
Today’s charts look cover the Amex Airline Index (XAL), along with a couple of stocks.
Warning, the charts aren’t pretty!
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$XAL American Airlines Index “daily” Chart
The “daily” chart offers a close-up view of the price action. It’s clear we have been in a down-trend, but airlines made a low in August and are attempting to bounce.
One small problem. After that bounce and consolidation came a breakdown on Wednesday. And unless the Airlines Index can reverse higher quickly, it appears set to retest its August low.
$XAL American Airlines Index “weekly” Chart
The “weekly” chart takes a step back and clearly illustrates the current downtrend. That said, momentum is attempting to turn higher so there’s still an opportunity for this pullback to hold. Breaking over the falling 10-week moving average will be key.
$UAL United Airlines “weekly” Chart
Many of the airlines stock charts are the same. United Airlines (UAL) is just one example of many that look the similar. Here again, we see UAL testing it’s falling 10-week moving average with a similar look to the index.
$EXPE Expedia “weekly” Chart
Another travel related stock, Expedia (EXPE), shows a stronger recovery in price. That said, it also shows the downtrend that has hit travel stocks over the past several weeks. EXPE has a lot of work to do (base building) before it can break out of this pattern.
Twitter: @andrewnyquist
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
Editor’s note: On September 9, 2021 at 9:01 CST there was a correction to grammar in the title from “Weight” to “Weigh”.
