Swing Trade Idea – (LUV) – June 23, 2020
Our bullish trade for Tuesday, June 23rd is LUV (Southwest Airlines Co). LUV is part of the Industrials Sector (XLI). XLI has experienced a 8.06% gain in the last month and its 1M trend turned neutral on June 19th.
LUV’s 1M trend turned neutral on June 19th and has recently pulled back providing a good buying opportunity as aviation sees an increase in demand. With a technical score of 3 (out of 10), LUV is a weak stock that will likely move higher.
As a stop loss, if LUV were to trade below $32.30 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We would also consider cutting losses on this options trade if the value of the vertical spread moves above $3.00.
