Only an act of God Bernanke can SAVE this stock from a healthy correction soon. SAVE was posted as a short setup a few weeks back along with some other airline stocks, many of which have already broken down. The entry criteria stated on the last couple of charts was to be a break below the rising wedge pattern. Although SAVE has continued to move higher within the pattern, yet to trigger a break below, I am adding it as an active short trade here around the 33.55 level.
Shorting SAVE now is what I refer to as an anticipatory trade, meaning that it has not yet triggered an objective entry (technical breakdown) yet based on my interpretation of the charts, I do expect the stock to do so very soon. Anticipatory trades typically have a lower chance of playing out vs. entering a stock that has recently broken out of a well defined pattern, however, the potential returns are considerably higher. For example, assuming that SAVE does make an about face from current levels and moves lower over the next few days, it will probably have to drop about 7% or so over the next week just to breakdown below the rising wedge pattern.
Shorting or going long a stock in anticipation of a breakout that has yet to happen is an aggressive trading style and as such, more conventional traders interested in this pattern may still prefer to wait for a breakdown of the pattern before establishing a position. One other option would be to establish a starter position here at the top of the wedge, adding to the position when & if prices do break below the pattern. My current preferred target is T2 at 24.60 with a suggested stop over 35.00