Spec Trade in $SAVE (Spirit) 🛫

SpockTradez
4 min readNov 7, 2023

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Putting the scans to the test!

A stock came up on two of my scans yesterday so I figured I’d test them out to see how it goes. That stock is $SAVE (Spirit Airlines). It came up on my “3 Days Under 30 RSI” alert (see below) AND the “Stage 1s Forming” alert.

The stock is beaten down due to the possibility that the merger with JetBlu ($JBLU) will be struck down by the DOJ.

THE CHARTS

Looking at the Daily chart, we can see that the stock has taken a nose dive, but we’ll also notice it has found Support. At the top of the chart we can see that it has previously been under 30 RSI twice back in June and soon after shot up in price until it reached 70 RSI.

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Looking at it on a bigger time frame, we see that the Monthly chart shows that it hasn’t been at this level since the COVID pandemic where it went even lower, as did every airline at that time due to lockdown and travel bans. We also see Support forming on this chart as well. It’s also worth noting that on the Monthly chart, the pandemic is the only time it went under 30 RSI, even now it’s only nearing that level on this wider time frame.

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Looking on the other side of the merger, $JBLU hasn’t taken nearly as much of a hit on the DOJ news. In fact, its stock is up today.

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TipRanks has $SAVE listed as a HOLD with projections at $11–$20 forecasted, which are all above the current price.

FURTHER READING

(ALT LINK: https://archive.ph/VTt1X)

3 Days Under 30 RSI SCAN

This is a scan to find companies on my master watchlist that have fallen under 30 RSI for at least 3 Days. The theory being, my list has good comapnies on it and barring and bankruptcies and other catostrophic events, will eventually bounce back up.

I always think of quality stocks under 30 RSI similar to when as a kid you’d try to trying to keep a beach ball underwater, it won’t stay there for long because it really wants to bob back up to the surface.

Again this is just an experiment I’m playing with while the Market is in this downtrend.

Copypasta version below:

[RSI(14) < 30.0]
and [yesterday’s RSI(14) < 30.0]
and [2 days ago RSI(14) < 30.0]
and [[favorites list is 62]] // * 1 — MASTER WATCH LIST *

**NOTE, you’ll have to add YOUR watchlist in the last line.

Just out of speculation and curiosity, I’m going to take a small position in $SAVE as an experiment to test the 2 Alerts combo and see what happens. A lot will depend on what happens with the merger and the DOJ.

Trade long and prosper!

🖖

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