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Chart of the Day: Airlines at Support

Written By Brian Hicks

Posted July 19, 2011

This is a sample alert from Options Trading Coach.  Not only do we educate readers on how to trade options, we educate on finding potential trades, using R-4 Triggers for example,

I’d love to get your feedback on this, too.





While most airline stocks break below support (AMR, DAL, LCC, for example), other airline stocks, like United Continental (UAL) and JetBlue (JBLU) are holding support… for now.

Are they a buy?

They may just be, as both put in extremely oversold reads, and play right into one of our R-4 Triggers.

Take a look.

On UAL, the stock is now trading just under the lower Bollinger Band, finding support at an April low of just above $19. Should this level hold, we could get a small bounce in shares of UAL.

ual stock 071911

There’s also JetBlue (JBLU), which is also oversold, finding support at triple bottom lows. We could see a small bounce off the lower Bollinger Band here, too.

UAL stock 071911b

The best way to trade these possible bounces is to play the underlying stock.

Buying here is up to you…

We just wanted to offer you a glimpse of what we watch daily in Options Trading Pit and Options Trading Coach.

We’ll try to offer more Charts of the Day going forward…