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Southwest (LUV) Shares Basing, Showing Bullish RSI Divergence

Southwest (LUV) Shares Basing, Showing Bullish RSI Divergence

by | Sep 21, 2021 | Chart SetUps

Southwest (LUV) showing relative strength on 9/20 with shares closing green and near the highs and name that has pulled back to VWAP from the Aug. 2020 lows and put in a nice base. The multi-week range above $47.50 has shown bullish RSI divergence into the double-bottom and looks poised to clear a downtrend and make a move back higher. A run above $51 can put shares into a low-volume node that stretches back to $58 while VWAP from the 2021 highs is near $54.50 and nice first target. LUV made a strong move off the 2020 lows and the recent pullback has held the 38.2% Fibonacci retracement.