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Technical Analysis: Southwest Airlines – Hitting resistance at 200 days moving average

LUV daily chart

Price of LUV had a good run up in the last couple of sessions. Today, it hit its 200 days moving average and looks to form a shooting star (bearish chart formation) on the chart.

RSI is slowing though it has not crossed over to the overbought territory. In the past few months, we saw the price of LUV pulling back without its RSI hitting overbought region in the month of April this year.

MACD has run up from -2 to baseline and showing signs of converging.

Would be taking some profits off the table at this level, and in the event of price pulling back, will re-enter again. Long term bullish, short term (1 week) bearish.

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