2 Uptrending Stocks To Watch That Reported Better-Than-Expected Earnings

AT&T Inc. T and Southwest Airlines Co. LUV are two stocks that have been uptrending throughout the previous six months. AT&T gapped up Thursday after reporting better-than-expected EPS and sales results.

Southwest Airlines also reported better-than-expected first-quarter EPS.

AT&T Daily Chart Analysis

• AT&T gapped up Thursday and is nearing a potential area of resistance on the chart.
• The stock is trading above both the 50-day moving average (green) as well as the 200-day moving average (blue), indicating sentiment in the stock has been bullish.
• Both of these moving averages may hold a support level sometime in the future.

Key AT&T Levels To Watch

• AT&T is forming what technical traders call an ascending triangle pattern.
• This bullish continuation pattern forms when higher lows are built up to a flat top resistance level before breaking out above and pushing the stock higher.
• The stock gapped up Thursday morning, approaching the possible flat top resistance level near the $32 mark.
• As shown on the chart above, the $32 area has been an area where sellers are able to overwhelm buyers and push the stock back down.
• The stock has been building higher lows, as seen by connecting the lows. A break below this line could bring about a stronger downward push. The stock may not find support again until it reaches the $26.50 level.

Southwest Airlines Daily Chart Analysis

• Southwest Airlines looks to have broken out of an ascending triangle pattern and is now looking to consolidate above previous resistance.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment in the stock has been bullish.

Southwest Airlines Key Levels To Watch

• The ascending triangle pattern broke out when the stock broke above the previous resistance of $59.
• For the stock to continue on its upwards momentum, the stock will now need to consolidate above $59 and hold this level as support.
• Bearish traders would like to see the stock fall back below the $59 level and eventually below the line connecting the lows. The price falling below the lows may indicate the trend is changing to bearish.

Southwest Airlines is the top holding in the U.S. Global Jets ETF JETS.