Airline stock Southwest Airlines (NYSE:LUV) took a hit on Wednesday, falling lower by $3.09 to $54.58 a share. The decline comes as Southwest's downgrade to 'sell' from Goldman Sachs (NYSE:GS). The company is also facing a series of negative reports regarding a bunch of issues. The stock is now testing its 200-day moving average and a close below that important MA would likely signal more downside in the near term.
Next Support
The next major price level that looks solid for support is around $48, which is where LUV broke out of a daily chart base in mid-January. It was also an area that was defended in October 2018, so it has shown institutional sponsorship in that area before and will likely do so again if tested.