Airline stocks are some of the only stocks taking off this morning.
All after striking a deal with the U.S. Treasury Department on a rescue package. Airlines such as American Airlines, Delta Air Lines, United Airlines, JetBlue, and Southwest Airlines have all applied for aid to help with liquidity issues.
At the moment, all of these airline stocks are still incredibly oversold.
With patience, each could double from excessively oversold conditions. Southwest Airlines (LUV) for example is just beginning to bounce off double bottom support. The stock is also oversold on RSI, MACD, and Williams’ %R — and could run back to $40 a share, near-term.
“We welcome the news that a number of major airlines intend to participate in the Payroll Support Program,” Treasury Secretary Steven Mnuchin, as quoted by Barron’s. Ten major airlines plan to participate in the Payroll Support Program, he said, and “conversations continue with other airlines regarding their potential participation.” Treasury officials are also working with smaller airlines on a rescue package.