Shorting Southwest Airlines

Southwest Airlines is an American airlines company. Unfortunately, high oil prices and high prices, in general, are not good for this company. Technical makeup looks promising too.

Why I choose to short Southwest Airlines

• The price touched $50.00 two days ago. The reversal was very swift suggesting that the algorithms were waiting for this price to be touched (be it profit taking or short opening).
• Three previous peaks have been broken, yet the price quickly reversed after violating these levels. This suggests that the point of breaking these levels was merely to close longs in a very liquid area with plenty of stop orders. Institutions need extra liquidity to close their massive positions.
• Southwest Airlines has been trading between two somewhat converging trendlines. Currently, we are sitting at the top of the channel reducing risk for shorts and offering a decent payout should the structure remain in place.
• Lastly, I don't believe that the current fundamental environment is good for this industry.