Airlines Trend Down
InTheMoneyStocks.com | Jul 26, 2017 11:54AM ET
Most of the major airline stocks have recently topped out. Leading airline stocks like United Continental Holdings (NYSE:UAL), American Airlines Group (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV) and Alaska Air (NYSE:ALK) have now made lower highs on the daily chart and are trading below their important 50-day moving average. And that puts the daily trend for these stocks in a down position. When stocks decline in this fashion, it often signals a bigger correction on the horizon for the sector.
Earlier this year, Alaska Air was the leading stock in the airline sector, but now it's the laggard. Today, the company reported earnings and is declining lower by nearly 4 percent on the session. ALK is now trading below its 50-week moving average, which is negative. Traders and investors must now watch $78 as the next major support level. This is a major retrace level for Alaska Air and should be defended by the institutional money when retested.
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