Domestic airline plays were weak Monday with the likes of UAL and AAL both down more than 3%. Looking at the JETS ETF one notices its inability to hold an unorthodox double bottom trigger of 29.29 taken out on 3/1 and has CLOSED above just 2 sessions since. When a breakout falters so quickly that is often a warning signal. Interesting clues can be picked up by names acting well, another name for relative strength, when they shrug off sector weakness. Below is the chart of CPA. an airline from Panama and how it was presented in our Tuesday 1/17 Game Plan.

Stocks that can be bought as they take out bullish ascending triangle patterns are CPA. CPA is an airline play higher by 4% YTD and 108% over last one year period and sports a dividend yield of 2.2%. Earnings have been volatile with gains of 1.8, 16,5 and 11.8% on 11/9 (sessions of 11/10-11 lost almost 9%), 8/4 and 2/18. It fell 14.1% on 5/6. The stock was higher 13 of 18 weeks ending between 6/24-10/21 after shooting off round 50 number and nearly doubled in the process. It is now down 7 of last 12 and digesting that big move. CPA has now formed a bullish ascending triangle at two year highs with the chart coiling nicely. Buy stop above 96 has measured move to 107. On the weekly chart one can see the nice, long cup base under construction which would be completed near the round 160 number dating back to January ’14.

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