First and foremost, LUV appears to be forming an inverted H&S. Target breakout of IHS = $47.70 (First level of resistance). Once breakout confirmed, Target 2 = $52-57.
The level of $47 has been solid support over the past months prior to the price finally dipping below the support in Feb.
You can see on May 15th, LUV was able to breakout to the top side of it's descending wedge. Since then, a strong impulse wave brought the action back to shoulder level.
Watch for a breakout above $41 before adding longs.
OTHER TECHNICALS-
RSI is trending up with bullish divergence.
Volume profile shows significant interest in the current price range compared to the previous range.
The level of $47 has been solid support over the past months prior to the price finally dipping below the support in Feb.
You can see on May 15th, LUV was able to breakout to the top side of it's descending wedge. Since then, a strong impulse wave brought the action back to shoulder level.
Watch for a breakout above $41 before adding longs.
OTHER TECHNICALS-
RSI is trending up with bullish divergence.
Volume profile shows significant interest in the current price range compared to the previous range.