The bullish DailyPlay for Tuesday, June 23rd is Southwest Airlines Co (LUV). LUV has rallied 18.5% in the last month and its 1M trend turned neutral on June 19th due to an increase in demand in late May and early June. Price has also pulled back after rallying earlier this month to provide a good buying opportunity.
- Leisure (down 50%) has accelerated compared to corporate travel (down 89%), favoring discount over legacy airlines.
- Low debt and strong liquidity puts LUV in a position of strength
- Earnings July 23 (30 days)
- A pullback towards 20 D EMA in a strong trend provides good risk/reward for a long opportunity
- Price continues to make higher lows indicating a bullish trend
- Both 1M and 6M trends are neutral