Leading airline stock Alaska Air Group (NYSE:ALK) has been under selling pressure for most of 2017. This stock topped out on March 1, 2017 at $101.43 a share. Since that peak, shares have fallen by nearly 36%. Today, ALK stock is trading at $64.82e. Traders should note that ALK is trading below its 200-week moving average, a negative chart formation that indicates lower prices ahead.
Major Support
So where's the next major support level for Alaska Air? It looks as if this stock was defended by the institutional money back in July 2016. That tells me that the institutional crowd will likely defend this stock again when it trades down to the $56.50 area, which was the July 2016 low. I will be a buyer of ALK shares at this level with a weekly chart stop-loss below $53. This should serve as solid risk/reward trade setup. The first upside target would be the $61 level.
See you on the charts.
