Sector Mid-Day Wrap - Arlines Higher: LFL, AMR, LUV

Published on Wednesday, 08 September 2010 13:10 Written by Gerard Lerod

New York, September 8th (TradersHuddle.com) - The NYSE Airline index is trading higher at $40.34, which represents 0.76% versus its previous close. The airline index is having a pretty much broad rally with 11 out of 13 airlines trading higher.

Lan Airlines (NYSE:LFL) is the top performer of the sector so far, trading at $29.05 representing 1.79%. versus the previous trading session. Shares of Lan Airlines, the Chilean based airline have defined support at $25.85 and resistance at $29.26.

AMR (NYSE:AMR) is also among the top performers, currently trading at $6.16 representing 1.48% from its previous close. AMR, the owner and operator of the 2nd largest U.S. based airline and founder member of the Oneworld airline alliance has calculated support and resistance levels at $5.86 and $6.49 respectively. The other top performer is Southwest Airlines Co. (NYSE:LUV), which is trading at $11.6 representing 1.4% from the previous trading session.

The sector's worst performers include JetBlue Airways (NASDAQ:JBLU) that is trading at $5.97 or -0.25% from the previous close. Shares of JetBlue Airways, the New York based discount airline have defined support at $5.31 and resistance at $6.13. Also among the worst performers is Alaska Air (NYSE:ALK), which is currently trading at $45.89 representing -0.2% from the previous trading session.

Benchmark crude for October delivery is trading lower trading at $73.46 a barrel on the New York Mercantile Exchange lower by $-0.97 from the previous trading session. Crude prices are closely watched by traders as they usually correlate with the airline stocks, given that a big component of the airlines' cost structure is covered by the price of fuel.