Chart of the Day: BA Set to Take Off to $215 as Airline Lags Recession
Pinchas Cohen | Dec 01, 2022 07:30AM ET
It is no secret that I am pessimistic about the economic outlook and believe that a definitive recession will follow the technical one which began when GDP declined the first two quarters of this year.
U.S. Federal Reserve chair, Jerome Powell reiterated on Wednesday that he believes "unique situation:
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There is a shortage of pilots after airlines offered senior pilots incentives to retire to cut costs during the pandemic.
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Consumers have saved
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Consumers are compensating after being unable to travel
Trading Strategies/h2
Conservative traders should wait for the price to close above $182, remain above the pennant for at least three days, and wait for a return move to confirm the pattern's integrity.
Moderate traders could wait for the price to penetrate $180 and a two-day filter above the range.
Aggressive traders could enter according to their strategy. Here is a generic example:
Sample - Aggressive Long Position
- Entry: $178
- Stop-Loss: $171
- Risk: $7
- Target: $213
- Reward: $35
- Risk-Reward Ratio: 1:5
Disclaimer: The author does not hold any of the assets mentioned in this article.
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