It looks like things are warming up for Alaska Air Group (ALK) with the charts on the verge of an upside breakout. Let's pack our bags and see what the charts and indicators show.
In this daily bar chart of ALK, below, we can see a number of positive technical clues. ALK broke above and retested the flat 200-day moving average line. The 50-day moving average line is positive and could soon cross above the 200-day line for a bullish golden cross.
The daily On-Balance-Volume (OBV) line made a low in the middle of May and has been strong since, telling us that buyers of ALK have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator is in a bullish mode above the zero line.
In this weekly bar chart of ALK, below, we can see that prices are above the flat 40-week moving average line. A rally above $70 will strengthen this chart.
The weekly OBV line is generally positive and the MACD oscillator is pointed back up to the zero line and a potential go long signal.
In this Point and Figure chart of ALK, below, we can see that a rally to $68.09 will be a positive and there is an upside price target of $72.37 indicated.
Bottom line strategy: Traders could approach ALK from the long side at current levels or on strength above $68 and above $70. $82 is my first upside price target. Risk below $60 for now.