Profit taking occurring on SAVE for the next few days

6 ביוני 2020

In early May, Spirit airlines was tanking. I had recognized that there was a double bottom in play at the 7.50 range so I loaded up on some SAVE shares to look for a profit taking move. For the past week, this stock has been on fire, having multiple days of 30%+ gains. I feel that we are going to see some downward potential here in the short term. RSI is currently in the oversold level on the 4H, and after such an aggressive impulse, I would anticipate that there will be some profit taking going on over the next few days. I anticipate that SAVE will hit the yellow ascending support line, at around $19.00. If this support tumbles, I think it may be a bear trap would expect the stock to fall to around $16.50 before reversing its course for the next leg up on its up trend. I will be looking to add to my position at both the $19.00 and $16.50 levels. My bias will change if the stock closes below $11.50. I think in the long run, SAVE will revisit the price it was trading at the beginning of the year.