Alaska Air Group, Inc. (ALK)

Alaska Air stock forecast: buy or sell

Alaska Air stock outlook

  • Alaska Air stock rose 1.75% to close at $35.49 on the stock market today.
  • The stock is configuring an uptrend pattern since mid-March, when it bottomed at $20.02. Up to date, price made a 77.27% gain since the beginning of this rally
  • Alaska Air Group, Inc., through its subsidiaries, provides passenger and cargo air transportation services. The company operates through three segments: Mainline, Regional, and Horizon.
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Please read:
The viewpoints published in this post are personal and not recommendations for you to buy or sell stocks. The author of this text does not have an understanding of the individual conditions of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are provided for general educational motives only

Alaska Air stock chart overview

Should I buy Alaska Air stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is ALK stock a buy?

In the current situation of Alaska Air there is just one buy setup eligible:

Uptrend buy setup

Alaska Air stock continues to trend higher since in mid-March and marked an amazing 77.27% gain. Price marked a local bottom in this uptrend at $33.00 on June 25, and since then it bounced off a 7.55%. Now, it's only 43.17% away from breaking out over its last top and resume the uptrend. The new entry point is therefore at $50.81. If you decide to enter this trade, the suggested stop loss is at $45.73

Buy setupBuy pointStop lossRisk
Uptrend buy setup$50.81$45.7310%
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Should I sell Alaska Air stock?

"To sell or not to sell", if you are holding Alaska Air shares?. In the same way as when we have to buy shares, deciding when is appropiate to sell is not a whimsical decision, and we must follow our own trading strategy. When selling, as well as buying, our setups are very easy to follow and are only applicable for selling shares you already own, not for shorting ALK stock

A golden rule is that you must never hold a trade that shows a greater losses than those expected at the time of the buy. The moment to sell your stock should always be determined by the stop-loss (automatic or manual)

Is it time to sell Alaska Air stock?

Currently, Alaska Air stock doesn't match any of our preferred sell setups, so if you hold Alaska Air stock and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell Alaska Air stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 2 brokerage ratings were published for Alaska Air

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Alaska Air ratings

Brokerage firmRating
Jun 22nd, 2020
Raymond James Neutral
Jun 29th, 2020
Goldman Sachs Group BuyStrong buy

Technical analysis

Alaska Air stock started an uptrend in mid-March, and gained an amazing 77.27%. The price shows higher highs and higher troughs, and along the way provided some buying opportunities for those who wanted to enter. Latest low was on June 25, when price bounced at $33.00. Like in all uptrends, price needs to rest and currently price is consolidating the gains in a range between $50.81 and $33.00

SMAs overview

Moving averages are indicators for traders to detect market direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

Supports and resistances

Technical analysts use supports and resistances as a way to identify price points in the stock price action that may act as barriers, preventing the price of an asset to move in certain direction. Supports are levels where the price tends to find support as it falls. This means that the price is more likely to "rebound" this level rather than break through it. However, if the price breaks down this level, it will probably continue declining until meeting another support level. On the other side, resistances are where the price may find a curb as it moves up. Likewise, this means that the price is more likely to "rebound" at this level, and if it finally ruptures this level, it will rally more easily until it finds the next resistance

The current resistance levels are:

  • R1: $36.81 (3.72% above)
  • R2: $37.00 (4.25% above)
  • R3: $37.95 (6.93% above)
  • The current supports are:

  • S1: $35.22 (-0.76% below)
  • S2: $34.72 (-2.17% below)
  • S3: $33.00 (-7.02% below)
  • Bollinger bands

    This is an indicator that was created in the 1980s by John Bollinger. Essentially, the Bollinger Bands are lines that flow around a centralmoving average and vary the distance from the bottom to the top depending on market volatility. They are usually drawn by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that gauges price fluctuations to reveal when the share or financial asset is overbought or oversold. Like other oscillation indicators, the RSI fluctuates between 0% and 100%. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in 1978

    The RSI dropped below the overbought level of 70 in early June after just crossing to the overbough zone for just one day (weak signal). The RSI reading today was 48.51. Alaska Air stock dropped a 29.36% since then

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    Earnings and financials

    Alaska Air Group, Inc. (ALK) posted adjusted EPS for the fiscal 1st-quarter that enhanced analysts' expectations. Quarterly EPS was $-0.82 per share vs. $-0.95. This Q1 report represents an earnings surprise of 13.68%. Forecasted turnover for Q1 was $1.7 billion but Alaska Air slightly undercut by 5.2%, reporting $1.6 billion.

    Same quarter one year ago, reported EPS was $0.17, so recently reported EPS means a loss of -582.35%. Looking at revenues, figures dropped a -12.77% compared to $1.9B year over year.

    Alaska Air will host the earnings call on Thursday next week. Market analysts analysts expect earnings of %s a share of $-3.82, that is a 365.85% lower than previous quarter. Financial reporting day has an additional risk for investors as the information posted can soar and sink the shares price with very low volume and not honouring your buy/stop-loss orders. You can uncover more information about the earnings conference call and the financial reports on the Investor Relations section of its website: http://www.alaskaair.com.

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