Southwest Airlines Co. (LUV) has pulled back slightly this month but a fresh up-leg could get underway to lift this airline to new heights. Let's see if we can get priority boarding pass with the charts and indicators.
In this daily bar chart of LUV, below, we can see that prices are above the rising 50-day moving average line and the rising 200-day line. A bullish golden cross of the 50- and 200-day lines can be seen in early December. The On-Balance-Volume (OBV) line has moved up and down with the price action the past year and generally confirms the advance. The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line but crossed to the downside last month for a take profits sell signal.
In this weekly bar chart of LUV, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line has been strong for the past 13 or 14 months. The MACD oscillator on this time frame is bullish.
In this Point and Figure chart of LUV, below, we can see the breakout at $64 and the pullback along with an ambitious price target of $92.
Bottom line: LUV looks like it can climb higher. Traders could go long at current levels and risk a close below $60 and can consider adding to longs on strength above $67.