Airline Stocks Are Struggling Again, Watch This Trade Level

Airline stocks have been a weak industry group throughout most of 2021. This important sector actually peaked out in mid-March and has been making a series of lower highs on the daily chart. As you know, lower highs are a bearish pattern and an indication of lower prices ahead and that is currently the case at this time. Airlines are also affected by energy prices which have been making new yearly highs recently. A resurgence of the coronavirus scare can also weigh on the travel sector.  

Traders can follow the airline sector by tracking the U.S. Global Jets ETF (JETS). This popular ETF is now trading below its important 50 and 200-day moving averages. This formation also puts the U.S. Global Jets ETF (JETS) in a weak technical position on the charts. Currently, the U.S. Global Jets ETF (JETS) is trading at $22.71 a share. Traders should note that the next major support level for this ETF is around $20.00. This key support area is where there is a 50% retrace level from the March 2020 lows to the March 2021 top. There is also a breakout level there which should also serve as solid support when tested. It will be very important to watch the U.S. Global Jets ETF (JETS) as it trades into this key  support area. If the pattern changes we as traders must change with it. So while the $20.00 area looks solid right now it still could be lower before a true buy signal is triggered.   

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