Charts: Which Airline Stocks are Set to Fly?
The airline sector is enduring some serious turbulence due to the sharply weakening global economy, but some carriers, such as United Airlines and easyJet are set for a softer landing and could even take off, Daryl Guppy, CEO of GuppyTraders.com, told CNBC.com.
“United Airlines has a better probability of being able to take off (compared to Southwest Airlines),” Guppy said in the CNBC.com exclusive.
United “is showing a soft landing on a steady support level,” he added.
The US carrier has been stuck in a trading range between $15 and $7 per share, but a break above that range could send stocks soaring toward $30, Guppy said. Guppy has a “downside” target of $5 for Southwest Airlines .
Video: watch the full CNBC.com interview with Daryl Guppy above.
The UK airline sector is due for a harder landing than the US, according to Guppy, but low-cost carrier easyJet is having an easier ride compared to its premium competitor British Airways.
British Airways is seeing solid support at around $100 per share, but the airline won’t see “full takeoff” until it breaks through its trading-range high of $160, he said.
“Until then, it’s rally and retreat trading,” he added.
Singapore Airlines is trying to build a support level around $10, but investors should wait for more rebounds from this level, Guppy said.
“If this is successful, then we can look at a return to around the $14 or $15 mark,” he said, but warned a failure to form the base could cause a share-price tailspin toward $7.
Australia’s Qantas “has failed to hold support at around $2.30” and faces a nosedive toward the $1.50 level, Guppy said.