Southwest Airlines Engulfing, Reversal Candle Signals Downside

Southwest Airlines Co (NYSE:LUV) had an engulfing, reversal candle on Friday. When this occurs at the top of a chart, it is extremely bearish. Today, further downside is confirming the move. Southwest should have put in a top. Please also note the mega sized volume that accompanied the engulfing candle on the daily chart. This adds more credence to the reversal. While small bounces will happen, the likely outcome of this chart is a move to $30.00.

Gareth Soloway
InTheMoneyStocks.com