Score 9.6 (out of 10): SOUTHWEST AIRLINES CO sets up for -8.8% drop in 1 month

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What’s Going On Here?

Southwest Airlines is caught up in a legal case about wrongly handling one of its customers. Despite the summer traffic, the shares are breaking lower.

Why Now?

SOUTHWEST AIRLINES CO has triggered a new price range signal. During similar occasions, SOUTHWEST AIRLINES CO shares had a median return of -8.8%, over the following 1 month – based on 10 historical occasions with 10 of those showing negative returns (100%). This sell signal for SOUTHWEST AIRLINES CO received a high score of 9.6 (out of 10). This insight was generated on 2022-July-12 with last price of 38.54.

What’s This Company About?

SOUTHWEST AIRLINES CO is in the Airlines business. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. Ticker symbol: LUV US.

What’s My Risk / Reward and Time Horizon?

We found 1 month to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 35.17 (-8.8%) has been reached. Based on SOUTHWEST AIRLINES CO’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 40.44 (last price at 38.54), which is equivalent to a 4.9% rally.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ under (2), etc.

Previous episodes:

-14.7% (February-2022), -9.3% (September-2021), -3.4% (August-2020), -5.1% (May-2020), – 13.5% (January-2020), -4.9% (July-2019), -8.3% (April-2019), -12.1% (November-2018), -2.3% (June-2018), -10.4% (March-2018).

Historical Chart:

Summary:

NameSOUTHWEST AIRLINES CO
ViewUp
Star (1 to 10)9.6
Target-8.8%
Time1 month
Hit Rate80%

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