Southwest Airlines Co. : Still a great upward potential
By Anas Boumedian
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$35.31 | $0 | $31.94 | -100% |
The company shows strong fundamentals. Firstly, the high valuation of the group shows a great investors confidence in it because there are willing to pay a high price for the stock. Moreover, the consensus revised upward EPS estimates for this year and that let see a great potential for the security on the stock market.
Technical patterns are in the green: prices are up for several months, following an upward trend line. The movement should continue in the coming trading sessions. The 20-day moving average, well-oriented, should help to reach new high prices at the USD 40.95 level.
Therefore, taking into account the strong fundamentals and technical patterns, it seems opportune to take a long position at the current price in order to benefit from a possible pursuit of the bullish trend. The first target price is the USD 37.2 and the USD 40.95 resistance. A stop loss will be placed under the USD 32.46 short term support, threshold that would invalidate this trading strategy.