All of the leading airline stocks are catching a small bid higher despite the overall stock market weakness. The catalyst for the strong airline sector is obviously the weak oil prices. Light sweet crude has declined lower by more $20.00 a barrel since topping out on March 1, 2012 at $110.55 a barrel. Should oil start to catch a bid higher it would be prudent to expect the leading airline stocks to pullback from the recent highs.
U.S. Airways Group Inc (NYSE:LCC) has been one of the strongest airline stocks lately. Today, LCC stock is trading higher by 0.09 cents to $12.78 a share. Short term traders should watch for intra-day resistance around the $13.00 area. The daily chart of LCC is also short term overbought, therefore, pullbacks in the near term are possible.
Some other leading airline stocks that are holding steady today include United Continental Holdings Inc (NYSE:UAL), Delta Air Lines Inc (NYSE:DAL), Southwest Airlines Co (NYSE:LUV). Please remember, the airline stocks are extremely sensitive to the price of crude. Any bounce in crude is likely to cause selling in the major airline stocks.