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:
- 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