Southwest Airlines Co. (LUV)

Southwest Airlines (NYSE: LUV) today reported its second quarter 2008 results.
Second Quarter 2008 Financial Highlights:
- Record quarterly revenues of $2.9 billion, up 11.1 percent from second quarter 2007
- Net income, excluding special items, of $121 million, down 37.9 percent
- Net income per diluted share, excluding special items, of $.16, down 36 percent
- Favorable cash settlements of $511 million from fuel contracts were reflected in net income, excluding special items

$16 is now a resistance. LUV is outperforming peers together with Ryanair (RYAAY). It is moving within an upward channel. The test of the upper trendline has pushed prices back. The trend is positive, but a low risk entry has to be identified. I would consider an entry somewhere between the moving average and the lower trendline should a reversal pattern occur.