On Wednesday I noted that major airline stocks have been under pressure since early July. This industry group has been steadily declining over the past eight weeks. And while the sector is getting oversold, it doesn't mean the stocks won't trade lower in the near term. Many in the group are now approaching very attractive trade levels.
Southwest Airlines (NYSE:LUV) is now on my radar. The stock topped out on July 7 at $64.39 a share. Today, LUV is trading as low as $51.65, so you can see how much it has already sold off. I'm now watching the $48.75 area as the next major support spot on the chart — a level that was tested in late January 2017 and should serve as major support when retested.
