Airline Stocks Just Crashed through This Key Support, But Can They Recover? – All Star Charts

John Jannarone

The Boeing Company may have recovered slightly in recent days, but airlines are on a troubling course. At least, that’s what one technical indicator shows in All Star Charts Institutional’s Top 10 Charts of the Week.

“Airlines had begun to improve on both an absolute and relative basis, but were shot down out of the sky once again, crashing to its lowest levels in 6 years relative to the S&P 500,” All Star Charts wrote in a client note. “This subsector is also back below support relative to the S&P 500 Transports ETF (XTN) and XAL has put in a lower low on an absolute basis. This has erased a lot of the technical improvements we’ve seen over the last few months and suggests a neutral approach remains best in Airlines themselves and relative to XTN. Relative to the S&P 500 however, we can continue to fade strength as it approaches our near-term downside target of 0.0307.”

Read the full Top 10 Charts of the Week here. For information about how to subscribe and receive the charts Wednesday, two days before they are published on IPO Edge, contact All Start Charts.

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