Airlines Take Off, How High Can They Go?
This morning, all of the leading airline stocks are trading higher. Since the sharp oil decline earlier this week the airline stocks have rallied. Most of these stocks are now getting a little short term overbought and extended, at this time these stocks may need to pullback or consolidate soon. Traders must be remember that the holiday season is usually a bullish period for the airline stocks and most other stocks in the transportation sector.
Some of the leading airline stocks that are trading higher this morning include Delta Air Lines Inc (NYSE:DAL), Southwest Airlines Co (NYSE:LUV), United Continental Holdings Inc (NYSE:UAL), and U.S. Airways Group Inc (NYSE:LCC). The airline stocks have all traded higher after AMR Corp (NYSE:AMR) filed for bankruptcy in late November 2011. There is a lot of chatter that there will now be more mergers taking place in the industry group. This is also helping the airline stocks trade higher at this time.