Airline Sector Clear for Takeoff

Airline Sector looks poised for further advances

Airlines are in the Industrial Sector and are tracked by $DJUSAR, the airline industry group. I have a chart of $DJUSAR below for reference. Since January, the group has been trapped in a descending wedge. Now however, the group looks bullish to my eye. Her’s why:

Bullish Developments

  • Price has broken out from the descending wedge and has cleared the 200ema
  • RSI indicator has broken above downtrend resistance
  • PPO momentum pointed higher and ready to firmly cross the zero line
  • The demand index has had a bullish cross.
  • Relative performance vs SPY is breaking out.

As long as the group can hold above the 200ema, I believe the group can fly higher.

Looking quickly over the charts it looks like DAL, HA, LUV, SAVE, and UAL have the strongest charts. Over the coming days and weeks I will be looking for an objective long entry within the group.

Thanks for reading!!

Happy Hunting and Good Trading

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