|After hitting a low of $10.10 in July 2008, Alaska Air has soared in price and is now in the $27–28 range. Given the massive runup, is now the time to buy or sell?|
|Looking at the chart (Figure 1), you can see that ALK has made a series of higher highs and higher lows, a bullish sign. Over the last month in particular, ALK had a very large move and formed a steep trendline (green) that is providing continued support for an upward move.|
|FIGURE 1: ALK, DAILY. Alaska Air must overcome resistance before moving higher.|
|Graphic provided by: Wealth-lab.|
|There is, however, some significant resistance that ALK must overcome before moving significantly higher. Old resistance from previous peaks lay at $28.50–29.00. This may well serve as a ceiling on the stock. If ALK can move north of $29, however, $36 would be the first price target. This one is worth watching for such a move.|
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