As we all know, the major stock market indexes are plummeting lower after the government job report was released this morning before the opening bell. There is one sector that is trading higher despite the overall stock market downdraft, that strength is in the the major airline stocks. This industry group is actually showing some intra-day strength this morning by trading higher since the open. Certainly, the lower oil prices will usually help to lift this sector and that seems to be what is happening today. Should oil rally higher throughout the session the airline stocks could stall out and decline.
AMR Corp.(NYSE:AMR) is trading higher by 0.06 cents to $6.09 a share. This stock has strong intra-day chart support around the $5.96 level. Should AMR fail to hold above this level the stock could trade lower to the $5.78 level. The upside resistance points for AMR stock are $6.13 and $6.25.
Delta AirLines Inc.(NYSE:DAL) has sold off sharply since May 20th, 2011 when it traded as high as $11.60 a share. This morning, DAL stock is trading higher by 0.03 cents to $9.65 a share. DAL stock will have intra-day resistance around the $9.75 and $9.90 levels. The intra-day support levels for DAL are around the $9.55 and $9.32 levels.
It is important to remember, if oil rebounds or trades higher on the session this will usually help to cause a sell off in the airline sector. On the flip side, if oil declines further it could help the airline sector to catch a small bid higher intra-day. Most of the daily charts for the airline stocks indicate that these stocks may have a little more downside in the coming week.