Southwest Airlines and Invesco Broke Support; Foster Wheeler Near Support

New York, November 22^nd (TradersHuddle.com) – After stocks wavered on Tuesday’s session, with the S&P 500 and the NASDAQ logging their fifth consecutive decline, amid debt and economic growth woes, we identified the following trading ideas.

Shares of Foster Wheeler FWLT ended Tuesday’s session very close to calculated support at $18.50 with current price action closing at just $18.86, placing the stock at levels that traders will start paying attention. The stock lost nearly 1% on concerns over global growth.

Foster Wheeler's current stock range is defined by current calculated support defined at $18.50 and by the resistance level at $20.85, which should be used by traders planning their trades. These support and resistance levels are based on an algorithm of peaks and troughs of the stock’s price action.

Traders wanting to establish a position should place close attention to the price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $20.85 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.

Foster Wheeler AG provides construction and engineering services to the oil and gas, oil refining, chemical/petrochemical, pharmaceutical, environmental, power generation, and power plant operation. Foster Wheeler operates in two business segments: Engineering and Construction Group and Global Power Group.

Another idea is Southwest Airlines LUV. The domestic airline actually closed below its calculated support level at $7.72, as shares fell 1.03% to $7.65 ahead of the busy travelling Thanksgiving Holiday and as the SPDR S&P Transportation ETF XTN closed the trading session at $42.39 near its 50 day moving average.

The breakdown of support raised Bulls concern, as this might provide the Bears the upper hand and push the stock further to the downside.

Southwest's stock was trading in a well-defined range with support at $7.72 and resistance at $9.28; given that this range was broken traders will be closely monitoring the stock's price action for clues of direction. From a technical perspective it can be expected that previous support becomes resistance, as the new range gets defined, however, given that Southwest's stock is still near the broken support, traders will be focusing on $7.72 to see if the stock can bounce back and return to its previous range.

Another stock, closing below calculated support was Invesco IVZ, the global investment management firm, closed the trading session at $18.23 below calculated support at $19.05. The stock broke current long setups, providing bears the upper hand and likely spurring momentum traders to move the stock lower.

Invesco's stock was trading in a well-defined range with support at $19.05 and resistance at $20.50; given that this range was broken traders will be closely monitoring the stock's price action