Alaska Air Group preparing for a deeper move lower

Alaska Air Group was a stock I wrote about some weeks ago, and one which continues to maintain a heavily bearish outlook on the daily chart, with yesterday’s price action confirming this weakness with a tired minor rally higher that was lacking participation by the buyers. This effort to rally also occurred earlier in the month, and given the congestion phase now building, we are also seeing a platform of support developing in the $53.50 area, but should this level be breached then we look set for a further move lower for the stock. Indeed below this we have a low volume node on the volume point of control indicator, and as such we can expect to see the price move this region with momentum and on down to test the further levels below.

Moving to the monthly chart, this is equally revealing with the heavy selling in March associated with the wide spread down candle reinforcing the bearish picture as we break away from the VPOC itself denoted by the yellow dashed line. Here too we have a low volume node in the $50 area, and with the next developed area of potential price support deeper still at $46.50 and denoted with the red dashed line of the accumulation and distribution indicator, this may prove to be the first stopping point for this stock in its journey lower.

By Anna Coulling

Charts from NinjaTrader and indicators from Quantum Trading