Alaska Air Group (ALK) Spotted As Roof Leaker Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Alaska Air Group ( ALK) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Alaska Air Group as such a stock due to the following factors:

  • ALK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $70.1 million.
  • ALK has traded 1.3 million shares today.
  • ALK is trading at 5.66 times the normal volume for the stock at this time of day.
  • ALK crossed below its 200-day simple moving average.

'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.

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More details on ALK:

Alaska Air Group, Inc., through its subsidiaries, provides passengers and cargo air transportation services primarily in the United States. The company operates through Alaska Mainline and Alaska Regional segments. The stock currently has a dividend yield of 1.2%. ALK has a PE ratio of 14. Currently there are 7 analysts that rate Alaska Air Group a buy, 2 analysts rate it a sell, and 3 rate it a hold.

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