These 3 Airlines Look Bullish Going Into The Week: How To Play Them

gray and white airplane on flight near clear blue sky

The S&P 500 and the Dow Jones Industrial Average both made new all-time highs last week, but as for individual stocks it’s been a “stock picker's market.”

Due to rotation within sectors, traders and investors have watched some of the biggest ETFs soar while their portfolio of stocks sits idle. Finding specific stocks to play bullish or bearish has felt similar to finding a needle in a haystack, especially with tech pulling back from all-time highs over earnings season.

The airline sector has yet to take the stage despite a ramp-up in the vaccine rollout and customers returning to the skies for business and travel. Rotation could be set to change this, however.

Boeing Co (NYSE:BA), American Airlines Group Inc (Nasdaq:AAL) and Southwest Airlines (NYSE:LUV) look like they could be set for take-off.

The Boeing Chart

On Friday, Boeing broke up from a descending trendline that had been holding it down since April 5. Although Boeing has briefly traded above the trendline, Friday marked the first day the stock has been able to close the day above it. This will give bulls more confidence.

On Friday, Boeing also recaptured the eight-day exponential moving average (EMA) and the stock is trading above the 200-day simple moving average (SMA), which are both bullish indicators. Boeing still needs to recapture the 21-day EMA, which it could do this week if bullish volume is sustained.


Bulls want to see Boeing’s stock make a move up to its next resistance level at $243.75. Bullish volume could then pop the stock over that level which would then make it support. If Boeing can gain the $243 area as support, it has room to move back up toward the $257.75 mark.

Bears want to see Boeing's stock fall back under the descending trendline, which will cause the stock to lose support at $232.70. A loss of that level could see Boeing revisit $223.71 before finding additional support.

The American Airlines Chart

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Disclosure: See Also: Stock Wars: JetBlue Vs. Southwest

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