Swing Trade Idea – (LUV) – November 24, 2020
Our bullish trade for Tuesday, November 24th is Southwest Airlines (LUV). LUV is part of the Industrials Sector (XLI). XLI has experienced a 8.55% gain in the last month and its 1M trend turned bullish on November 5th.
LUV recently broke above its $41 resistance, retested this level and bounced higher with strong momentum. Its 1M and 6M trends turned bullish on November 5th. With a technical score of 9 (out of 10), LUV is a very strong stock that will likely move higher.
As a stop loss, if LUV were to trade below $41 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 below $1.50.
