Airline Sector: Time for Short Term Rebound?
Is it time for short term rebound in the airline sector? Looking at Amex Airline index, (XAL) it has tested $51.7 three times and in the last two sessions, printed a spinning top and hammer-like bar. Look at the last two times it tested support with these long lower tails - it managed to have a rebound. It tested support today (wed)and closed near its high, despite a $1 rise in Jun crude oil futures. Looking strong, but this rebound maybe a short one as there are many overhead resistance: 20MA,50MA,200MA.
CAL and UAUA are quite similar to XAL, at some support level printing long lower tail bars, but also having some overhead resistance.