As covered in last Friday’s Airline Sector Analysis & Trade Ideas video, SAVE (Spirit Airlines) broke down below the double top pattern that was highlighted following their earnings report before the bell today, with the stock currently trading exactly where predicted as per the measured target of the double-top pattern.
SAVE broke down below the base of the double-top pattern on Monday with additional confirmation of that sell signal as the stock followed through to the downside in the following sessions. Spirit gapped down at the open today & continued to fall very sharply, making a brief ‘momentum-fueled overshoot’ of the price target before snapping back & sticking to that level like a magnet since, giving that unofficial short trade idea the 18% drop that was predicted in the video… a great example of pattern measurements can be used to help predict where to book profits on a trade vs. making a random guess or waiting until the trade has clearly started to move against you while giving back considerable gains.
The brief 1-minute analysis of SAVE from that video can be viewed by clicking this link.