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The stock market is likely to continue to rally into January. There may be some weakness from February into March, but 2025 is due to close on the upside.
The relative strength screen of the S&P 500 stocks shows three airline stocks in the top fifteen.
S&P 500 Relative Strength Screen
United, American, and Alaska are among the strongest stocks.
Applying the same analysis to the S&P groups, the airline group is ranked number three.
S&P 500 Group Relative Strength Screen
The airline group is third-ranked.
The monthly price cycle projection of the industry group points to higher prices in 2025 as we see below.
Airline Group Monthly Cycle
Despite the 2024 gains, price appears headed higher in 2025.
Of the three top-ranked stocks, United Airlines has already rallied sharply. Alaska Air and American Air appear better positioned for current purchase. The former exhibits greater relative strength than the latter, so we first look to Alaska Air.
Note that a seven-year price downtrend has been reversed to the upside in the monthly strip. The weekly and monthly strips depict the reversal of relative strength downtrends. The monthly momentum shows a series of higher lows but no overbought condition. This appears to be the start of a longer-term move. The $60 price level is in sight in 2025.
Alaska Air Daily, Weekly, Monthly
This strong price rise is in an early phase.
American Air also reveals weekly and monthly downtrend price reversals. On a weekly basis, relative strength is also breaking a three-year resistance line. The $22-$25 area is the price target. The monthly price cycles of both stocks do not peak until the spring and summer of 2025.
American Airlines Daily, Weekly, Monthly
American is a bit weaker than Alaska, but is still headed higher.
