Amid all the selling and hand-wringing, the quantitative service of TheStreet upgraded Spirit Airlines (SAVE) to a "Buy". A "Buy" in the middle of the market slide. It got my attention so here we are looking at the charts and indicators.
In this daily bar chart of SAVE, below, we can see how prices have lifted off from late June. Prices broke a downtrend from January and ignored rising oil prices.
SAVE is above the rising 50-day moving average line and the bullish 200-day line. In August you can see the 50-day line crossing above the slower-to-react 200-day line for a bullish golden cross buy signal.
The daily On-Balance-Volume (OBV) line shows a rise for the past 12 months and only a small and temporary dip in late June. The OBV line has made a new high recently to support and confirm the new price highs.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is pointed up from the zero line - a buy configuration.
In this weekly bar chart of SAVE, below, I went back four years to show the large potential base pattern. A weekly close above $60 will be a breakout. Prices are above the rising 40-week moving average line.
The weekly OBV line shows a positive slope. The weekly MACD oscillator is bullish.
In this Point and Figure chart of SAVE, below, we can see an upside price target of $62.63. That target, if reached, means we would have a breakout on the weekly bar chart (above).
Bottom line strategy: A quant "Buy" recommendation and three strong charts - I say we go long SAVE near $52 risking to $47 and looking for gains to the low $60's for starters.