Swing Trade Idea (LUV) – September 24, 2021
Our bullish trade for Friday, September 24th is Southwest Airlines (LUV). LUV is part of the Industrials Sector (XLI). XLI has found support near the 200 D MA and is experiencing an uptick in momentum.
After a multi-month consolidation period, LUV is breaking out higher above the $52 resistance level which provides a good risk/reward bearish opportunity The 1M trend recently turned bullish and with a technical score of 3 (out of 10), LUV is a weak stock that will likely move higher from current levels.
As a close, if LUV were to trade below $52 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves below $1.62.
