Alaska Air Group Inc. (ALK)

[ITMS]

The Chart Trend In The Airline Sector Is Down, Where Will It Land?

Most of the major airlines stocks have topped out recently. Leading airline stocks such as United Continental Holdings Inc(NYSE:UAL), American Airlines Group Inc(NASDAQ:AAL), Delta Air Lines, Inc.(NYSE:DAL), Southwest Airlines Co(NYSE:LUV) and Alaska Air Group, Inc.(NYSE:ALK) have now made lower highs on the daily chart and are trading below their important 50-day moving average. This puts the daily trend of these stocks in a down position. Often when stock decline in this fashion it is a sign of a bigger correction on the horizon for the sector.

Earlier this year, Alaska Air Group, Inc.(NYSE:ALK) was the leading stock in the industry group, but now it is the laggard. Today, the company reported earnings and it is declining lower by nearly 4.0 percent on the session. The stock is now trading below its 50-week moving average which is very negative. Traders and investors must now watch the $78.00 area the next major support level. This is a major retrace level for the stock and it should be defended by the institutional money when retested.



Nicholas Santiago
InTheMoneyStocks