Last week’s mild bout of profit-taking was just what the doctor ordered for stocks in need of a breather. And, I might add, the list of overbought stocks needing a reprieve was quite large, what with so many big winners this year. Airline stocks are a perfect example. Many have flown to new 52-week highs, some have even reached record highs.
But chasing stocks at dizzying heights is never as satisfying as scooping them up at a discount. You see, savvy traders are loath to chase.
Instead, they lie in wait until a multi-day retreat ushers shares to a lower-risk entry point. These pullbacks bring stock prices back to support levels, which are altogether more attractive to deploy new trades from.
And that is exactly what’s happened with airline stocks. Their uptrends remain firm and last week’s retracement is providing an excellent buy-the-dip opportunity. Check out these three airline stocks ready for takeoff.