I Pledge Allegiant, to the Reversal…

• Posted by Greg Harmon
• on July 11th, 2013

Allegiant Travel had a great run higher from the September low at 59.96 to a high at 109.72. A move of nearly 83%. BU tit has been running for a long time with some pullbacks along the way. in those pullbacks the 50 day Simple Moving Average (SMA) has played an important role as support for a reversal back higher, with more major pullbacks dropping through it but stalling at the bottom of the Bollinger bands. It just so happens that the stock price is sitting on both the 50 day SMA

and the lower Bollinger band right now. After a 10% pullback it is also confirming a bottom and reversal after a exhaustion sized volumes sell candle on Tuesday and a move higher in price Thursday. The Relative Strength Index (RSI) has held in bullish territory and is turning back higher too. Only the Moving Average Convergence Divergence indicator (MACD) is left to confirm a reversal. Are you ready for the next leg higher?

This is a smaller and thin name. If you have a position size of over $100,000 you might want to cut it back or just watch this one.

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