Shares of Delta Airlines (DAL) are falling 16% today as the market continues to worry about COVID-19 and the implications for the airline industry. Last week, Delta Airlines traded as high as $36.00 and now hovers at $24.00. Its pandemic low was two weeks ago at $19.00. This tells us that a pivot low is still in place and swing traders can look to nibble at the RIGHT technical level. Per the stock chart, there is an epic gap fill approaching at $22.25. This technical support is worth a quick swing trade, considering if it hits in the next few days, Delta will have dropped from $36.00 to $22.00 with no major bounces. Is it possible Delta can hit $19.00? Yes, of course, anything is possible in this market environment but the odds do favor a 10-15% bounce off the gap fill at $22.25. I will be looking to take this trade if it tags in the next day or two. Beyond that, the time factor for technical trading would be out of alignment and I would avoid it. Once traders and investors understand the importance of time when investing/trading, it changes the game. A level that was good a day ago may not be good today. Keep that in mind and learn, learn, learn! Check out the chart here... https://inthemoneystocks.com/delta-airlines-dal-swing-trade-level-coming-up/ Gareth Soloway InTheMoneyStocks Chief Market Strategist
Shares of Delta Airlines (DAL) are consolidating inside a wedge pattern on the daily chart. Should this wedge pattern break out to the upside, Delta Airlines has the potential to pop 72%. The airline industry just got a massive bailout and they will need more. In the near-term Delta Airlines is setup as best in the industry and any economic improvement could likely trigger this big upside move. The key to swing trading Delta Airlines is to wait for the wedge pattern to break out. Once price gets above $25 (and stays there), look for the stock to surge dramatically higher. Within 6-12 months, a move to $43 is likely, an 72%. I would highly recommend staying away from Delta unless it breaks and holds above $25. There is just far too much technical chart risk of a move back below $20. The breakout will kick start momentum buyers and algos, but only once it breaches $25. See the chart setup here: https://inthemoneystocks.com/wedge-pattern-break-delta-airlines-dal-may-pop-it-72/ Gareth Soloway InTheMoneyStocks Chief Market Strategist
