Southwest Airlines (LUV) is following the Fibonacci script. In September, it bounced off the intersection of the 50% retracement level of the November 2016 low and this year’s July high, and the 62% Fibonacci fan line of that rally range.
Fan lines are trend lines that extend from the trough low of the Fibonacci range through the different retracement levels. The stock continued its advance and now is intersecting with the Fibonacci fan line drawn from the start of the rally and through the 38% retracement level.
A pullback may be in order, and the 50% fan line currently in the $56 level is the first area of support.