|Over the last few weeks, I've written about positive chart patterns developing in JetBlue and Alaska Airlines. The positive developments occurring in those stocks seem to be supported by the airline sector in general now with the potential breakout of the airline index from a symmetrical triangle.|
|As can be seen in Figure 1, the Major Airlines Index has been caught between ascending and descending trendlines since July 2008. The bottom trendline has formed three points while the top one formed two prior to last week's potential breakout.|
|FIGURE 1: MAJOR AIRLINES INDEX, DAILY. The relative strength index (RSI) is moving up strongly in support of this potential price breakout.|
|Graphic provided by: Wealth-lab.|
|Assuming this breakout holds, which seems likely, the price target can be calculated by finding the difference between point 2 at $108.58 and the value at the lower trendline below point 2, which in this case is $56. Adding that difference to the breakout price of $90 leads to a price target of $142.58.|
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