Airline Stocks Descend As Oil Soars
All of the major airline stocks have been coming under some heavy selling pressure since early February 2012. The catalyst for the decline in the airlines sector has been the sharp increase in oil. Crude has been soaring higher by more than $100.00 a barrel since early February and this happens to coincide with the decline in the airline stocks. Yesterday, spot crude closed at over $106.00 a barrel, and this is a problematic number for the airline industry. All of the leading airline stocks still look to have further weakness ahead.
United Continental Holdings Inc (NYSE:UAL) is one of the largest airlines in the world. This stock has topped out on February 3, 2012 at $25.84 a share. This morning, this leading airline stock is trading lower by 0.22 cents to $21.02 a share. Traders should watch for near term daily chart support around the $19.00 area. Other airlines that still look as if they have further downside on the daily charts include Delta Air Lines Inc (NYSE:DAL), U.S. Airways Group Inc (NYSE:LCC), and Jetblue Airways Inc (NASDAQ:JBLU).