Home
News
- 1 Spirit Airlines stock closed at $17.48 while witnessing a gain of 11.98% during the last intraday trading session.
- 2 JetBlue has agreed to sell Spirits assets in Boston and Newark to Allegiant.
- 3 The year-to-date return of Spirit Airlines is -10.95%, while the three-month return is 9.59%.
Spirit Airlines (SAVE) stock price entered a solid bullish trend, rising from a low of $14.50 to a high of $19.69. The stock price surged approximately 35% from the low after falling since the start of 2023. However, the move was halted as the price rose above $19 due to the strong presence of bears.
The rejection induced a negative sentiment in the market, and the price retraced to form a support at $15.40. The price then entered into a consolidation phase that ranged between $15.40 and $16.90.
SAVE stock price hovered in the consolidation zone for August 2023. On September 12 (last candle), the asset price finally gained enough bullish momentum to shatter the resistance level of $16.90 and closed above it.
The last candle closed as a strong bullish candle. If the next candle can break the high of the last candle, the SAVE stock price might rise toward the next minor resistance level of $18.50.
SAVE stock price has spiked more than 11% and might retrace and retest the $16.90 level before making any further upward move. If the stock price returns to the previous zone, Spirit Airlines stock might retrace to recent support of $15.40.
Reason Behind 11.98% Surge
JetBlue acquired Spirit Airlines for $3.8 Billion on July 28, 2022. JetBlue won the bidding war against Frontier Airlines, one of the low-cost airlines. The share price climbed after JetBlue stated that it plans to sell some assets at Boston and Newark Liberty airports to Allegiant as it works to win approval for its tie-up with Spirit Airlines.
JetBlue said it has agreed to transfer two gates in Boston, two in Newark, and 43 takeoff and landing authorizations in Newark to Allegiant.
Will SAVE Stock Retest $19.60?
The stock price has surged above 20, 50, and 100-day exponential moving averages, suggesting a rise in bullish momentum. However, Spirit Airlines’ stock price has been rejected by 200-day EMA.
The Chaikin money flow (CMF) score has jumped above the 0 mark and currently stands at 0.07, suggesting strength in the market. The relative strength index has crossed the 50 mark positively, indicating the strong presence of bulls in the market.
The Bollinger bands have contracted, implying a decrease in volatility. SAVE stock price has crossed above the upper band of Bollinger, indicating chances of short-term pullback.
Conclusion
JetBlue sold off assets at Boston and Newark Liberty airports to Allegiant Air in an effort to win the approval for a merger with Spirit Airlines, which boosted the price.
Technical Levels
Major support: $15.40 and $14.50
Major resistance: $19.20 and $19.60
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
