Southwest Airlines Company (LUV) stock price persists in a strong bearish trend after the price slipped below the key exponential moving average of 50-day and 200-day. The LUV stock price showcased a strong downside trajectory and slipped to a three-year low price.
Recently, the bulls accumulated and tried to recover when the price broke below the low. However, the bulls could not withstand the heavy selling pressure for long and the price made a breakdown after a consolidation of over two weeks.
Moreover, Southwest Airlines Company is yet to announce quarterly results on Thursday, post which, the stock price may show gains. However, the quarterly results should be promising to attract investors and pump the price.
The Wall Street analysts are hoping the company will deliver an estimated revenue of $6.56 Billion and earnings of $0.378. Good quarterly results might bring hope for the investors.
Analysts offering a 1-year price forecast for Southwest Airlines Company have a maximum estimate of $50 with an upside potential of 93.87% and a minimum estimate of $20 with a downside potential of 22.45%.
LUV stock option-chain analysis states that the current implied volatility in the market is 44.43% with a decrement of 0.41% in the last trading session. The at-the-money strike has an OI of 2026 on the PUT side and 417 on the CALL side indicating the buyers dominating at the CMP.
LUV Stock Price Shows Breakdown After Accumulation
The LUV stock price currently trades at $25.79 and has broken below a two-week consolidation. The stock price might decline more until it faces strong buying levels on the downside.
The pre-earning sentiments are negative as the stock price is falling. However, It may turn around if the company announces an outperforming quarterly results. The post-earning sentiments may favor the buyers if the results match the estimates.
The EMAs Show Weakness In Short-Term
The daily LUV stock price chart shows that the price slipped below 50-day and 200-day indicating weakness in the short term as well as long term.
The overall technical opinion rating including RSI and MACD is signaling a 90% “sell” with the weakest short-term outlook on maintaining the current direction.
Conclusion
Southwest Airlines Company’s stock price is in a strong bearish trend and has reached a three-year low. The company will announce its quarterly results on Thursday, which may affect the price movement.
The analysts expect a revenue of $6.56 Billion and earnings of $0.378 per share. The stock price may rise if the company beats the estimates, or fall further if it misses them. The pre-earning sentiments are negative but the post-earning sentiments may change depending on the results. The stock price is currently at $25.79 and may decline more.
Technical Levels
- Support levels: $25.06 and $23.75
- Resistance levels: $26.32 and $27.57
