One under-$10 name in the airline complex that's setting up to trend higher is SkyWest (SKYW - Get Report), which, through its subsidiaries, operates a regional airline in the U.S. It also provides ground handling services for other airlines throughout its system. This stock is off to a bearish start in 2012, with shares down by over 40%.
If you take a look at the chart for SkyWest, you'll see that the bears have done a number on this stock during the last six months, with shares plunging from over $13 a share to a recent low of $6.25 a share. During that massive move lower, shares of SkyWest have consistently made lower highs and lower lows, which is bearish technical price action. That said, SKYW has now started to trend sideways for the past month between $6.25 to $7.10 a share. In fact, SKYW has started to show a double bottom pattern at around $6.25 to $6.34 a share, and the stock looks posed to trigger a near-term breakout trade.
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