DAL - The Airlines Are Not Looking to HotChecking Back in with Delta Airlines. Check out our previous analysis on these as you can see how we've been playing them and get an overall feel of the direction we're going. Our previous posts provide some detail towards our positions.
Short and Sweet Fundamentals:
1. Delta just suspended flights to 10 major airports through at least September: Chicago Midway, Oakland International Airport, Hollywood Burbank, Long Beach, T. F. Green International Airport, Westchester County Airport, Stewart International, Akron-Canton, Manchester-Boston Regional Airport and Newport News/Williamsburg International Airport.
2. DAL is trying to cut losses anywhere possible as they're burning through $50-$60 million per day.
3. At current pace, they're scheduled to run out of the Stimulus $ by the end of June.
Technical:
1. We have a bearish pennant. There was a clear break and a retest.
2. If you entered the short position on the break where we have the purple circle on the chart, we're looking to play this down to the following targets:
Target 1: $17.09
Target 2: $12.67
Target 3: $6.41
I would keep a trailing 4-5% stop loss on this one as we feel price could get volatile. The trailing stop will keep you position going if DAL tanks.
Not to leave the bulls hanging out to dry, they would like to see a Double Bottom at $19.00 area and a reversal (unlikely, but anything is possible when the FED is printing). As we've mentioned before, we're personally not long on airlines until we start seeing people fly again.
Hit us with a like and a follow for more updates. Cheers!
Disclaimer:
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Airlines
Do Planes Fly? (DAL)Symbol: DAL
Sector: Airlines
Delta airlines is currently testing rock bottom.
Horizontal support at low of 21.26 needs to hold or we could see sell off.
Adding to this position at current price I like.
We are closing with lower highs down over 190%
We have so far attacked support area 4 times almost directly and held.
What we would like to see next is price to hold support and start to curve into the gray triangle as our pennant compresses. Then look for breakout above the black dashed line.
First target 24%
Second target 56%
Third target full recovery 190%
Great opportunity, this is the patterns we want to focus on.
It is ideal to wait for the Crossover and than the breakout for a strong confirmation.
Limit at 21.26 see if we can get filled and set a tight stoploss and play that level closely in case of break down.
I will stay updated on Delta Air Lines on this post below.
AAL DAL LUV BA Time to fly is approachingAs everyone knows, the airlines have taken probably the worst of the hit from the pandemic.
If you take a look at the weekly for all the top airlines and BA, they all look very similar.
I present American because I like feel like this chart has one has more defined risk areas due to recent price action and currently sits at one of its strongest supports in the history of the stock
From highest time frames to lowest, here is my bullish case:
Monthly: RSI has never been this oversold in its history, even at the near collapse in 2008
Weekly:You cannot miss the bullish divergences on weekly RSI. It is rare to see on a weekly chart.
MACD bottoming nicely.
Daily chart shows lots of incoming accumulation volume starting the end of April. After the Buffet news, it seems lots of retail investors dumped their stock into stronger hands.
Bullish divergences on RSI began Middle of March. Almost 2 months of divergences will make this thing pop strong and fast when it is ready.
Admittedly, the market structure is still bearish. Lower highs since the start of the fall with the last high at 13 dollars.
What intrigues me now though is this second bounce off 9.08 lows. It may not ultimately be the double bottom we hope for, but that 9 dollar mark created a defined stop loss.
I am playing AAL here. If it is to break below 9 dollars and close the week at that point, it is a clear sell with reassessment at 7.80-7.95. Break that and ill be a buyer at 5.25
First target here is 15.50.
This trade needs 1-2 months, and possibly to August. It is a buy and hold. When fall comes around, it is IMPORTANT to assess due to the potential of the second wave of Covid-19. If it hits again, run for the hills because the second time around we will have a full 6-8 months of Corona season, debilitating all airlines and probably bringing them all back to all time lows, in this case $1.50.
If you do not get greedy on this trade, you will get a 50% return within 3 months. It is a gamble after that until a vaccine is out there.
Qantas in Talks with the Government- Qantas is in talks with the government to secure an exemption for 1.5m social distancing rules on its its flights.
- If given the green light and the ability to kick off at full capacity for domestic flights / (possibly incl. New Zealand) we expect the stock to move higher - possible to the 50% retracement.
- Technically we are in a downward Channel and we need to break out of the immediate resistance and out of this channel. Our Momentum Squeeze is ON and we are waiting for a breakout.
Allegiant Travel Company With the airlines starting to implement face coverings as mandatory many airlines are even creating new seat plans to respect social distancing. This although brings and invites certain guest will certainly raise the price of tickets as load factors go up. Allegiant operates on an ultra low cost carrier model and will most likely continue to work towards selling as much space in their aircraft as possible. with a lot of cash reserves leaving them to have positive outlooks for holding operations during slower months.
HoneywellAs a defense contractor and service provider to various industries they providing a wide range of products to their clients. They are having a slow recovery from the lows of 2020. Looking to reach back in previous trading ranges.
#WIZZ ANALYSIS.. Sometimes only one line can tell us a lot more than we think about the technical scope.. There isn't much to say about #WIZZ, I think there is a new risk of a big drop at any moment, unless the stock price is permanently above the line.. Also, due to the pandemic disaster we are experiencing, the air transportation industry has been in a very difficult situation.. The cash flows of the airline companies are seriously disrupted and this situation seems to continue for a while, in this context, we can see much lower levels in the stock price..
Disclaimer: Please do your own due diligence when it comes to trading.. Invest at your own risk..
I wish you all the best..
AAL "LONG" possible double bottom Airlines have been with so much bs that it has fallen extremely hard... weak earnings for AAL and Warren Buffet stating Berkishere has dropped all airlines stock from their portfolio. Although there is a great reason why this stock is performing horribly, I have the slightest belief that perhaps we see another bullish movement coming soon. There is no reason why it should go up, but my TA tells me it should and most likely will if we hold $9 or even gap up the next coming days.
The only concern I have with this long is the descending triangle formation, I find it very unlikely that we break out of it.. the only way I see this occurring is with a good PR stunt from Donnie Pump.. We have now had this low challenged since 2012 or so... great opportunity imo
US30 - SHORTUS30 is due another crash. Airline companies laying off thousands of workers and Warren Buffet getting rid of all his Airline positions is a sign for the BEARS!
Going Long in AIRLINES?! - 05/04/20 RECAPHi traders,
Being bullish in UAL the very next day the world got to know Warren Buffet's failed investment seems like a crazy idea. But being a technical trader, I saw an opportunity and it paid off!
My trade:
1) UAL - LONG @24.52, SL 24.22, after dropping for the third consecutive day and showing a beautiful Cup and Handle formation, this was a clear long play. +1.53%
*In my ID trades, I risk 1% of the account per trade and go for 2% (2:1 RRR ). Sometimes I adapt a little bit as you can see in the trades' description.*
Total PnL for the day: +1.53%
Total PnL for the week: +1.53%
Good trades,
Tom | FINEIGHT
Potential killzones on EasyJet (1d) and airlines overviewIt's impossible for me to predict what will happen with EasyJet. So, I'm showing two potential killzones on a daily time frame.
My probability estimate is for further moves south. I think the issues here are about entry points, for those who missed the deep dive. It's dangerous though at this time.
Globally all civilian commercial airlines are in deep trouble (except Boeing perhaps). Govts and central banks simply cannot bail them all out. Air traffic will be seriously reduced over the next year. We can therefore expect further travel south for EZJ and other airlines. Berkshire Hathaway just closed on $50 Billion in losses on airline stocks.
If one is shorting EZJ and other stocks much 'bottle' is required to suffer the vacillations in price. It's unlikely to be a smooth travel south.
Disclaimers : This is not advice or encouragement to trade securities. No predictions and no guarantees supplied. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
UNITED AIRLINES; Ready for Take Off or Have We Not Even Landed?✨ We provide charts every day ✨
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Good morning, this is your captain speaking 👨✈️, looks like United Airlines (UAL) may be in for turbulence depending on the reaction at support here. Today we are looking to see if UAL is going to retain its short term uptrend, giving us a smooth landing, or if we are going to be looking at a double bottom or lower.
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1. Fractal Trend is showing a downtrend (Red background color) for UAL on the hourly chart.
2. Breakaway Scalper is currently neutral (Grey bar color), so we have no trade.
3. With this strategy we enter long ONLY when Fractal Trend shows a Green background and Breakaway Scalper shows a Green bar color. We enter short on opposite conditions (Red on Red) and otherwise want to be in cash.
4. While there is still a question if airlines in general are bottoming or are going to see more downside (many airline charts look like this, as does the airline ETF JETS), for now we are still holding support as illustrated on the chart.
5. If supports holds, we will be looking for reactions at R1 and R2 resistance. After that we have the top of the current price structure at R3 and then otherwise bearish order blocks at R4 - R6 which were formed on the way down.
6. Support levels below include the bullish order blocks at S1 - S3.
7. It is likely the fate of the airlines is tied overall to the market's reaction to the state of COVID and the economy. Do we reopen and start getting back to normal? That is of course bullish for airlines. Do we try to come out of hiding only to see our shadow and then find ourselves with weeks more of lockdown? In that case there could be a chance airlines haven't even landed yet.
SPX trend line breach may signal breakdown pointIf you've been following my previous thread, you know that I've been watching the 50-day EMA and the 200-day EMA as possible reversal levels for this rally in the S&P 500. We eventually pushed past the 50-day (green curve), but yesterday we got rejected from a test of the 200-day (dark blue curve), and now we've violated the upward trend line (light blue line) that SPX has formed on its hourly chart over the last month. (In addition to technical resistance from the 200-day EMA, we also hit a fib retracement level and a couple important psychological resistance levels on the fundamental side-- 20-22.5 forward P/E, market cap 140% of GDP-- so there are lots of reasons to reverse from here).
In my past experience with trend line breakdowns, the price often moves back above the trend line at least one more time, and then it either holds there or reconfirms the breakdown. That's already happened, as you can see on the zoomed-in chart:
It's possible that we will move above the trend line again and retest the 200-day EMA before breaking decisively below the trend line, but personally I have already purchased puts.
In terms of fundamentals, the overall news environment is starting to shift in a more negative direction, I think.
Over the past month, the market has been driven by government stimulus, decent tech earnings, and optimism around reopening. It has mostly shrugged off bad news such 30 million job losses, a spate of corporate bankruptcies, and a flood of worse-than-expected 1Q economic data.
Now, however, we're turning our attention to Q2. Q1 GDP fell only 4.8%, whereas Q2 GDP is forecast to fall 27.7%. The earnings numbers for Q2 are going to hurt a lot more than those for Q1, especially due to companies' high borrowing costs. Analysts are also predicting another rash of bankruptcies and debt offerings in May. Cities and states may announce new taxes to offset budget shortfalls.
Meanwhile, the Fed is out of interest rate ammunition and slowing its balance sheet expansion. There's a bailout for oil likely coming in the next few days, and possibly an infrastructure bill in the longer-term pipeline, but federal stimulus is slowing down as the economy reopens.
And if China's experience is anything to go by, reopening will be slow, with lots of logistical bottlenecks and false starts. Demand will stay weak because consumers are out of cash. Some states will reopen too early and have to go back into quarantine within a few weeks. I think we will retest the March low in coming months as investors realize the scale of the economic damage and that it's not a temporary thing.
Big tech, I think will continue to outperform due to persistent fear of Covid-19. Airlines and cruise lines will continue to struggle, with some likely filing for bankruptcy in the coming year. Banks will remain hard-hit and highly risky due to continued default risk.
JCP "Long"Im expecting a bounce to $1 or so.. there is many reasons like investors that might want to rush into this opportunity at this great price!
JCPenny is so cheap it doesn't make sense to ignore this chance.. it is likely that JCPenny will go bankrupt in the future.. but thats more than a couple months away.. they are asking for a bailout which could result in a bullish short term sentiment making it pump big :)
I think this is a great opportunity and should just set a stop loss at .20 to .21
JETS propelled past channelJETS is breaking a bear triangle formation channel, with very high volume as seen in chart.
In the chart you can see the next resistance drawn. Which are the 200 and 50 simple moving average.
OBV has been trending higher, making higher lows, and is following the channel drawn.
JETS is an ETF holding airline stocks, its portfolio top 4 holdings and % weight are:
LUV (13.66%) - Southwest
AAL (12.49%) - American
DAL (11.00%) - Delta
UAL (10.52%) - United
Total= 47.47%
AAL "Long" I had a long from 10.02 but closed it at 10.80.. then I noticed AAL broke some resistances and also the channel it was sitting on which made me buy some calls for tomorrow! American Airlines earning date is on April 30 which is probably when the big shorts will come in..
Airlines have been one of the worst-performing stocks lately while many other companies that are closed have still pumped.. maybe its time AAL shines for a couple of days!
Resistance lines are shown, we ideally wanna keep 11.14 holding if we are going to shoot for 12+ tomorrow.. maybe FOMO will get to people who knows..
Good Luck!
Top 3 Stocks NOW 🚀| April 2020Top 3 Stocks NOW 🚀| April 2020
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Stocks : BA
What’s the Strategy here :
Absolutely in love with the run up !!!!! try to catch it in action !! sell when it hit 155-160 $
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