The stock price of Spirit Airlines (SAVE) has stabilized the past two months around the $40 level, but more sideways price action, testing and accumulation will be needed for SAVE to change course.
The good news in this chart of SAVE, above, is that prices have stabilized a bit since the beginning of the new year. The price of SAVE has crisscrossed above and below the 50-day simple moving average, and the Moving Average Convergence Divergence (MACD) oscillator is above the zero line.
But, while a stable price is helpful, the On-Balance-Volume (OBV) line is pretty flat. It would be more encouraging if the OBV line was rising, telling us that buyers had become more aggressive. Without a stronger sign that buyers were showing interest in SAVE, we are likely to see prices bounce around further.
On this weekly timeframe chart above, the OBV line looks more encouraging; while not going up, it has "based". The MACD oscillator has crossed with a cover shorts signal and could be rising back to the zero line.
Prices are still below the declining 40-week moving average, so the trend is still down, but with some stability on the daily chart we don't want to be too bearish at this juncture.