US Airways, along with US Airways Shuttle and US Airways Express, operates more than 3,200 flights per day and serves more than 200 communities in the U.S., Canada, Mexico, Europe, the Middle East, the Caribbean, Central and South America. The airline employs more than 32,000 aviation professionals worldwide, operates the world’s largest fleet of Airbus aircraft and is a member of the Star Alliance network, which offers its customers more than 20,500 daily flights to 1,293 airports in 190 countries.

For more than 7 months, US Airways is trying to merger with American Airlines. American parent company AMR Corp is trying to exit Chapter 11 bankruptcy protection, which it filed for last November, by the end of the year. US Airways has expressed strong interest in a merger with American and has been courting AMR creditors. The company is trading in a bullish trend and several elements argue for the continuation of this trend.

From a fundamental viewpoint, the company is strong. Firstly, the security is undervalued compared to its peers with an EV/Sales ratio estimated at 0.32x and a PER estimated at 3.94x by the Thomson Reuters consensus for this year. Moreover, the Thomson Reuters consensus revised upward EPS estimates for this year and that let see a great potential on for the security on the stock market.

Technically, the security is in an uptrend on all time scales and it is supported by moving averages. Increasing moving averages let think there will be no reversal in the coming trading sessions. The bullish trend will not be stopped until prices are above the USD 12.65 short term support. This trend should allow the stock to break its significant USD 14.45 long term resistance, which will be a strong buy signal.

In consequence, investors can take a long position in US Airways. A new bullish fluctuation could lead the security toward its highest level in case of breakout of the short and long term resistance. The target price is USD 16.9. A stop loss will be fixed under the short term support at USD 12.65.