The Greedy Trader Weekly Analysis
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Downtrend Resistance
Downtrend Resistance stock alert presents a technical analysis stock market picking technique based on combination of technical indicators, stock trend analysis, trend following indicators and pattern recognition. Stock market alert is a warning signal. Downtrend Resistance stock alert indicates that price is near long-term resistance trendline and probability of short-term trend reversal is high.

The strategy is based on selling long (or taking short) position on downtrend testing resistance. The strategy has low to medium risk and average reword.

Downtrend Resistance

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- 7/3/2025 -
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Southwest Airlines (LUV) Technical Analysis

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Summary:
Weekly :Overbought sectorWilliams' Percentage Range and Lane's Stochastic are overbought
Daily :Williams' Percentage Range and Lane's Stochastic are overboughtBearish Deliberation CandlestickDaily  MACD line has moved above its signal line
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It was a second consecutive positive week for the Southwest Airlines (LUV). During the week, the LUV gained 1.92 points, or 5.97%, and closed at 34.08 on Thursday, July 3, 2025. It was the best weekly gain since May 30, 2025. LUV was trading at average weekly trading volume.

LUV is a member of Industrials Sector. Industrials is the most overbought sector. Sector/industry rotation is considered a proven strategy to beat the market. Use the following links to find overbought/oversold technical indicators by Sector or by Industry.

Long-term trend: [See LUV long-term trend chart]
A long-term downtrend had started on December 21, 2017 at 66.99 and reached 21.91 on November 1, 2023. LUV lost 45.08 points, or 67.29%, in 305 weeks. The chart has formed a Rectangle chart pattern. The trend support level is at 20.79 and resistance is at 63.46. A rectangle chart pattern is characterized as a short-term horizontal channel and represents a trading range and indecision area that is usually resolves in the direction of the main trend. Chart analysis usually considers a rectangle pattern a continuation formation, but it can also mark significant top and bottom. A rectangle pattern within younger parent trend has more chances to mark a continuation. Use the following link to access a Rectangle chart pattern help, or use a Technical Stock Screener to see the list of stocks with Rectangle pattern in a long-term trend.

Medium-term trend: [See LUV medium-term trend chart]
A medium-term uptrend had started on November 1, 2023 at 21.91 and reached 36.12 on December 5, 2024. LUV gained -14.21 points, or -64.86%, in 57 weeks. The chart has formed a Rising Channel chart pattern. The trend support level is at 24.93 and resistance is at 37.29. A Rising Channel represents price movement contained between parallel lower (support) and upper (resistance) trend lines. Trading Channeling stocks is one of the most reliable and accurate trading techniques that provide traders with precise entry and exit points as well as stop-losses and take-profit recommendations. Use the following link to access a Rising Channel chart pattern help, or use a Technical Stock Screener to see the list of stocks with Rising Channel pattern in a medium-term trend.

Weekly Technical Indicators: [See LUV weekly technical indicators chart]
Weekly Williams' Percentage Range and Lane's Stochastic are overbought. Use the Technical Stock Screener to see the list of stocks with overbought weekly Williams' Percentage Range and Lane's Stochastic. Oscillators are designed to signal a possible trend reversal. They can act as alerts and should be taken in conjunction with other technical analysis tools. Oscillators can be used to confirm other technical signals. Use the following links to access Lane's Stochastic and Williams' Percentage Range help.

The weekly MACD line is above its signal line since May 16, 2025. This is an indication that the medium-term trend is up. Use the following link to access a MACD help.

Short-term trend: [See LUV short-term trend chart]
A short-term downtrend had started on June 10, 2025 at 34.62 and reached 30.72 on June 23, 2025. LUV lost 3.90 points, or 11.27%, in 13 days. The chart has formed a Symmetric Triangle chart pattern.

Daily Technical Indicators: [See LUV daily technical indicators chart]
Daily Williams' Percentage Range and Lane's Stochastic are overbought. Use the Technical Stock Screener to see the list of stocks with overbought daily Williams' Percentage Range and Lane's Stochastic.

During the last week, daily MACD line has moved above its signal line. Such crossover is considered a bullish signal.

Candlestick pattern: [See LUV candlestick chart pattern]
On Friday the chart has formed a Bearish Deliberation Candlestick pattern. This pattern occurs in an uptrend;it appears after a sustained upward move and suggests that the rally is losing strength and a reversal is possible. The reliability of the Bearish Deliberation pattern is medium. Use the Technical Stock Screener to see the list of stocks that had a Bearish Deliberation Candlestick pattern during the last week.

Daily Oscillators
Description Value Status Divergence Chart
Relative Strength Index (RSI) 61.79
Williams' Percentage Range (W%R) 15.90
Overbought
Lane's Stochastic (%D-Slow) 89.52
Overbought
Greed/Fear Indicator (GFI) 78.48
Moving Average Converg./Diverg. (MACD) 0.27
Weekly Oscillators
Description Value Status Divergence Chart
Relative Strength Index (RSI) 50.93
Williams' Percentage Range (W%R) 10.80
Overbought
Lane's Stochastic (%D-Slow) 81.33
Overbought
Greed/Fear Indicator (GFI) 77.24
Moving Average Converg./Diverg. (MACD) 0.13
Trading Signals
Description Value Chart
Quarterly Trendline Resistance 37.29
Upper Bollinger Band 34.47
Monthly Trendline Resistance 34.41
Price 34.08
Daily Stochastic Crossing 34.04
Weekly Stochastic Crossing 33.66
20 Day Moving Average 32.53
Parabolic System 31.87
50 Day Moving Average 31.40
Lower Bollinger Band 30.46
Sector and Industry
Description Name Rank
Sector Industrials 9
Industry Airlines 46
Daily Trend
Description Value
Direction Down
Chart Pattern Symmetric Triangle
High 34.62
High Date 06/10/2025
Low 30.72
Low Date 06/23/2025
Weekly Trend
Monthly Trend
Description Value
Direction Up
Chart Pattern Uptrend
Status
Resistance
Support
Low 23.82
Low Date 04/21/2025
High 34.62
High Date 06/10/2025
Description Value
Direction Down
Chart Pattern Broadening Descending Wedge
Status Test Resistance
Resistance 34.41
Support 17.07
High 36.12
High Date 12/05/2024
Low 23.82
Low Date 04/21/2025
Quarterly Trend
Yearly Trend
Description Value
Direction Up
Chart Pattern Rising Channel
Status Valid
Resistance 37.29
Support 24.93
Low 21.91
Low Date 11/01/2023
High 36.12
High Date 12/05/2024
Description Value
Direction Down
Chart Pattern Rectangle
Status Valid
Resistance 63.46
Support 20.79
High 66.99
High Date 12/21/2017
Low 21.91
Low Date 11/01/2023
Warning: TheGreedyTrader.com presents weekly analysis. Technical indicators and trend parameters are calculated for the close of business day indicated on the top right corner of the screen.