Technical traders got a neat sell signal when Qantas shares rejected trend line resistance and the 50% retracement level at $1.43. This peak seems a distant memory after Qantas released its May operating statistics yesterday. These painted a picture of disappointing domestic travel numbers combined with stiff competition for the business of Aussies travelling overseas.
From a technical point of view, the move below the February peak at $1.28 is a sign of weakness. This and the fact that the slow stochastic (see box below the chart) is now heading down from the overbought zone above 80% suggest potential for lower prices yet for Qantas shares.
Qantas shares Weekly Chart