Southwest Airlines (LUV) is trading lower Monday morning as headline news about flight cancellations appears to be influencing some traders. However, successful investing, I believe, is about looking forward and recognizing trends and not bouncing around from headline to headline.
Let's check out the charts of LUV.
In the daily bar chart of LUV, below, we can see that the shares found good support around $48 the past three months. LUV rallied into October but fizzled around the 200-day moving average line. Prices are above the rising 50-day line and should stay above it even with some price weakness today.
The On-Balance-Volume (OBV) line made a low in August and has improved. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in buy territory.