XAL Technical Analysis Daily

In looking over the U.S. Industries Indices today, I identified the AMEX:XAL Airlines Index as a great performer with some near term strength.

Even though the RSI is now overbought, we’re primarily concerned with the current price strength. The averages and MACD concur. Diving into the XAL components I’ve identified three stocks which I’ll be watching for the next few days for a good entry point.

Airlines Index Chart AMEX:XAL for September 20th, 2009 09/20/2009

Airlines Index Chart AMEX:XAL for September 20th, 2009 09/20/2009

 

Continental Airlines (CAL), Skywest Inc. (SKYW) & Southwest Airlines (LUV)

I’m looking for any pullback as an opportunity to get into Continental (quote analysis) over the next 3 to 4 trading days. As long as CAL is on the up-swing I’ll buy in as close to $15.50 as possible. I’m also looking for an RSI anywhere below 70. I plan on hanging on as long as the MACD continues to trend into positive territory and I’ll switch over to the Fast Stochastic to tell me when to exit on trading day.

Continental Airlines CAL September 20th 2009 - 09/20/2009

Continental Airlines NYSE:CAL September 20th 2009 - 09/20/2009

 

Second on the list is SkyWest, Inc. (quote analysis). I’m looking to buy on any pullback that is on the up-swing and the price range is between $16.50 and $18.00

SkyWest, Inc. SKYW September 20th, 2009, 09/20/2009

SkyWest, Inc. SKYW September 20th, 2009, 09/20/2009

 
Last I’m looking at Southwest Airlines (quote analysis)as a potential play heading into the end of this week or early next week. I’m looking for an easy buy-in at anywhere between $8.50 & $9.75. I’m mentioning it here a bit early because I want to keep it on the watch list. It’s showing a decent trend, although it’s just a bit too hot at the moment, I expect that will change over the course of the week.
Southwest Airlines LUV Analysis September 20th 2009

Southwest Airlines LUV Analysis September 20th 2009