Southwest Airlines (LUV) declined from a December/January peak to a "landing pattern" from April to July. Prices closed back above the 200-day moving average line the other day so let's put on our seat belts and take a look at the charts and indicators.
In this updated daily bar chart of LUV, below, we can see that prices are above the now rising 50-day moving average line. LUV is above the 200-day line but its slope is still bearish. The daily On-Balance-Volume (OBV) line turned up in early June but it is still a long ways below the December/January peak. The trend-following Moving Average Convergence Divergence (MACD) oscillator is in a bullish mode above the zero line.
In this weekly bar chart of LUV, below, we can see that prices closed above the declining 40-week moving average line on Friday. The weekly OBV line shows only a small improvement this month. The weekly MACD oscillator just crossed to a cover shorts buy signal.
In this Point and Figure chart of LUV, below, we can see an upside price target of $62.58 but not new highs above $66.08.
Bottom line: The charts of LUV have improved a lot in the past four weeks but they do not yet suggest that the December/January highs can be broken in the near-term. LUV looks extended on a short-term basis so I would not rush in to be a buyer.