• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

At the Copa, Is It Takeoff or Landing?

I found several 'interesting' things on this airline's charts.
By BRUCE KAMICH
May 13, 2022 | 10:50 AM EDT
Stocks quotes in this article: CPA

Copa Holdings (CPA) is a leading Latin American provider of airline passenger and cargo services. The company was upgraded to an "overweight" rating by a sell-side firm Friday so a fresh look at the charts and indicators is worthwhile.

In the daily bar chart of CPA, below, we can see that the shares have held the $66-$64 area a number of times. CPA has crisscrossed the 50-day and 200-day moving averages several times in the past 12 months. I find it "interesting" that the tops and bottoms on this chart have been quick-turning affairs.

Trading volume has increased since November and that too is "interesting." Typically volume decreases in top patterns from left to right -- the biggest volume happens early in a top. In bottoms we often see volume increase through the pattern. Has CPA been making a bottom or a top? The On-Balance-Volume (OBV) line has weakened since February.

The 12-day price momentum study shows a higher low from March to May even though prices made equal lows. This is a bullish divergence and could prompt a rebound. 

 
In the weekly Japanese candlestick chart of CPA, below, we see a bearish picture. Prices have been stuck in a lengthy sideways pattern but the key is what the indicators have been doing. Dips in the $70-$60 area have been bought but the OBV line has turned weak in the past four months.
 
The MACD oscillator has declined from early 2021 telling us that the trend-strength has weakened.  
 
 
In this daily Point and Figure chart of CPA, below, we can see a nearby downside price target of $64. 
 
 
 
In this weekly Point and Figure chart of CPA, below, we can see that the software is projecting a potential downside price objective of $46. 
 
 
Bottom-line strategy: I pay attention to what fundamental analysts are saying but I don't ignore the power of charts and technical indicators. CPA could bounce for a few days or more but the risk is a break of $64 and still further declines. Avoid the long side of CPA for now.
 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Airlines | Transportation | Analyst Actions

More from Stocks

3 International Energy Stocks for Dividends And Growth

Bob Ciura
Aug 12, 2022 11:30 AM EDT

International companies often trade at discounts to their American counterparts, which can mean better value and better yields as well.

It's Far Too Early for a Victory Lap in the Race Against Inflation

Bret Jensen
Aug 12, 2022 10:45 AM EDT

Prices are continuing to rise, particularly for labor and rent, and that could put a drag on profits and consumer spending.

Fossil Group Sounds the Alarm While NL Industries Rewards Its Shareholders

Jonathan Heller
Aug 12, 2022 10:30 AM EDT

The former signaled lower revenues for the year while the latter declared a healthy special dividend.

The TJX Companies Reports Next Week, But There's a Trade Here

Stephen Guilfoyle
Aug 12, 2022 10:15 AM EDT

Many large chain retailers report during the week to round out earnings season, along with the July Retail Sales.

Major Indexes Keep Uptrends Intact After Mixed Thursday

Guy Ortmann
Aug 12, 2022 10:00 AM EDT

However, we are becoming more reticent about chasing price at current levels given some of the data and valuation issues.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:44 AM EDT PETER TCHIR

    CPI Beats Expectations, But Maybe Not the 'Whisper'?

    Slightly better-than-expected inflation across the...
  • 01:44 PM EDT STEPHEN GUILFOYLE

    This Holding Lights Up With Strong Earnings

    Check out the latest from TheStreet's Stocks Under...
  • 09:24 AM EDT PETER TCHIR

    Jobs Report Reaction: Incredibly Strong, But Questions to Ask

    An incredibly strong July jobs report. Not only d...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login