January 17 Chart of the Day - Spirit Airlines
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Shares of low-cost air carrier Spirit Airlines (SAVE) fell roughly 17% earlier today, one day after a judge blocked the airline's planned $3.8 billion merger with JetBlue Airways.
With a recent focus on the airline industry including prior Charts of the Day for Alaskan Airlines, American Airlines, Delta, Jet Blue, and Boeing we wanted to also analyze Spirit Airlines chart from a price action technical analysis perspective.
Trading right around $6 we can see on the monthly chart that price has been beaten up pretty badly and could possibly create new all time lows.
We used to have a mentor that would frequently say "they can only go to zero..."
That's true and anything is possible.
Perhaps the called off merger could get revitalized. Or maybe a larger carrier could buy them out at this deeply discounted price. Or possibly they could declare bankruptcy and one day go to $0.
The weekly chart pretty much paints the same picture. Bargain hunters may be out in full force today but they should know that price could get drawn to that trend line down below, or maybe go to zero.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
Take a look at the charts and let us know what you think.
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