Airline Stocks Continue To Descend
All of the major airline stocks remain under heavy selling pressure this morning. High oil prices are certainly hurting the margins in this sector. This morning these stocks are making new lows for 2011 and as long as oil remains strong the airline sector could face further pressure.
United Continental Holdings Inc.(NYSE:UAL) is trading lower this morning by 0.87 cents to $20.13 a share. This stock topped out in late October 2010 around the $29.75 level. The stock will have some minor daily chart support around the $19.75 area, however, high oil prices could cause this stock to decline further.
Delta Airlines Inc.(NYSE:DAL) is making a new 52 week low this morning declining by 0.33 cents to $9.08 a share. This stock topped out in early November 2010 around the $14.50 level. The stock will have some daily chart support around the $8.50 level and more around the $8.00 area. As long as oil continues to trade higher it would be prudent to expect further declines in this stock.
AMR Corp.(NYSE:AMR) broke below the important $6.00 support level today. This is a new 52 week low for the airline giant. This stock is again being sold off because of the high fuel prices. AMR stock will have some daily chart support around the $5.50 level and more around the $5.00 area.
As long as oil continues to surge higher all of the airline stocks will remain under pressure. The geopolitical events in the Middle East do not seem to be going away anytime soon. Should oil see a super spike, which could happen if there is any disruption in oil production from Saudi Arabia, airline stocks could remain under selling pressure.