Southwest Airlines' 15-min chart: RSI Overbought, KDJ Death Cross.

Southwest Airlines' 15-minute chart has triggered an RSI Overbought condition and a KDJ Death Cross at 08/15/2025 10:15. This indicates that the stock price has risen too quickly and exceeds the fundamental support level, suggesting that the momentum is shifting towards the downside and may continue to decrease.

Southwest Airlines (LUV) has been navigating a challenging market environment, with technical indicators signaling caution despite positive financial results. On August 15, 2025, at 10:15 AM, Southwest Airlines' 15-minute chart triggered an RSI Overbought condition and a KDJ Death Cross, indicating that the stock's price has risen too quickly and may be due for a correction [1].

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. An RSI reading above 70 is considered overbought, suggesting that the stock's price has risen too rapidly and may be due for a correction. The KDJ Death Cross, which occurs when the KDJ line crosses below the DJ line, indicates a shift in momentum towards the downside. This combination of technical indicators suggests that Southwest Airlines' stock price may continue to decrease [1].

Southwest Airlines has experienced mixed performance recently. On August 11, 2025, the stock price fell by -1.89%, dropping from $29.62 to $29.06. This decline followed a period of seven consecutive days where the stock fell, resulting in a cumulative loss of -10.64% over the past ten trading days [1]. The trading volume also decreased significantly, with a drop of -624 thousand shares on the last day [1].

Analysts remain split on the stock's outlook, with a weighted average rating of 3.38 and a simple average of 3.00, indicating a lack of consensus on its direction [2]. The mixed fundamentals show a high gross margin of 76.61% but a negative net income of -1.12% [2]. Despite these challenges, money flow data remains positive, with an inflow ratio of 50.56% [2].

Technical indicators also signal a bearish bias, with the RSI and WR indicators consistently oversold over the past five days [2]. The stock is currently down by 10.67% from its recent price drop, and analysts recommend caution ahead of earnings and capital strategy updates [2].

Southwest Airlines' CEO Bob Jordan highlighted a strong year-end performance in 2024, driven by strategic initiatives and operational improvements. However, the company faces challenges in 2025, including a planned fleet reduction and ongoing labor tensions [3]. The airline reported record operating revenues of $6.9 billion in Q4 and $27.5 billion for the full year. The net income for the year stood at $465 million, with a diluted EPS of $0.76 [3].

Looking ahead, Southwest Airlines expects a 2% to 3% decrease in available seat miles (ASM) for Q1 2025, followed by a 1% to 2% increase for the full year. The company also anticipates fuel efficiency improvements and cost optimization [3]. Southwest aims to improve operating margins and return on invested capital (ROIC) by 2027, targeting at least 10% and 15%, respectively.

In conclusion, Southwest Airlines is navigating a challenging market environment with mixed fundamentals and technical indicators suggesting caution. Investors should monitor the company's upcoming earnings and capital allocation strategy for potential catalysts. For now, the internal diagnostic score and technical indicators suggest that traders may want to consider waiting for a clearer breakout before committing capital.

References:
[1] https://www.ainvest.com/news/southwest-airlines-15min-chart-shows-rsi-overbought-kdj-death-cross-2508/
[2] https://www.ainvest.com/news/stock-analysis-southwest-airlines-outlook-navigating-challenging-market-mixed-signals-2508/
[3] https://www.aviacionline.com/recovering-from-crisis-southwest-airlines-reports-465-million-profit-in-2024-and-plans-fleet-reduction-in-2025