DAL trade ideas
Delta Air Lines Inc - DAL - Daily - Descending below key averageRolling over again, now breaking the 253 (1 year) day moving average after testing it in April and again in May... The 66 day (1 quarter) moving average is pointing down and the price is rejecting it on the last rally. 41 is the level where the least amount of trading has occurred in DAL shares, so that means this is where buyers are supposed to be. I think, however, that the buyers are already "IN" the stock and we can see a slow bleed from this level and grind down to the 36-33-30 level over the next 6-9 months. If Walmart is rolling over, so will Delta. Walmart leads the way. If anything, consider going long Walmart (very cheap in this recession) and short Delta.
Be prepared to sell short on rallies back to 41-42 after a push down to $39.50 support (from high volume - see volume profile on right side of chart). Stop loss levels are 44 and 45. 42-43 is the lowest risk level to sell short with the tightest stop, but the safest trade is when DAL is falling and weak since it is more likely to trigger stops and keep falling. So, ideally we want to push through 41 and get down to 39.50 and have a bounce, then reject 41 and push down through 39.50 to set up the move to 36-33-30. Updates to follow.
Tim DAL 41.45 last 10:40AM EST June 8, 2015
Delta Airlines -DAL - Weekly -Touched 1x's sales in 2014Delta is just off of an extreme level of valuation as it backs down to $43.36 today, May 22, 2015.
If you look at the Total Revenue chart, you can see that revenue gains were steady and have increased by 42% since 5 years ago in May. Over the same time frame, however, the stock price has risen by 267%. After-tax margins went from losses to profits and margins briefly climbed over 20% (after-tax).
Next questions: Did DAL use up all of their tax-loss carry forwards? Will the drop in oil prices lead consumers to spend more on travel? Will people fly on vacations more or will driving still be the best choice.
DAL has been a monster winner for any portfolio up until now, but Airlines are a cyclical business and the business cycle hasn't been outlawed. Consolidation and efficiencies have driven up profitability, and shareholders have been richly rewarded. It looks like there are more "shareholders" than "share-buyers" at this level and the recent price action is alerting us to sellers unloading shares. $46 seems to be the common price where the sellers are unloading shares and the strong buyers are down at $34-$30. So, from $43.30 here, the upside seems less than the risk to the downside.
Here's hoping you look at the fundamentals too when you examine a chart and not just the "technimentals"....
Cheers,
Tim 5/22/2015 2:02 PM EST 43.31 last DAL
PS - Note - I have been picking a top in DAL over the past year +. Check out my charts.
Buy fear, sell greed... Mmm airlines in general flat YTD. Anyhow buy volume on D1 Charts show bids averaging above their daily volume which tells me that there was short selling profit taking, but more importantly that there was a large amount of bidders buying the dip forming the long legged doji at support. If we look at todays derivatives action you can see the largest bidder loading up on 6,958 SEP 15 48 Calls at 1.70 (Delta .35 / IV 31.62% / Open Interest 57,412) . So all in all, I'm looking to be long the stock. Current fast Beta is at 1.21.
Support: 40.90 - 42.60 (If broken it would invalidate the trade) , do note 200 Moving Average support (I'm not alarmed by price dipping below the moving average due to previous strong recoveries after price dipped below).
Resistance: 47.40 - 47.96 (Use your own discretion on where to take profits)
Update: I have not entered long yet, will wait until next week to decide on whether I'll enter or not.
Cheers =)
DAL Testing Upper Trendline If this Upper Trend line breaks Look to go long. If it Fails look to go short to that 42 level. Momo 90 RSI for the year. I only play Liquid stocks. Out-performers.
DAL: Invert H&S On the DailyI have identified a potential inverted head and shoulders pattern developing in Dal. Pattern is confirmed when price closes above the neckline. Target can easily hit 52, but a more conservative target would be just below the high in case of double top formations.
Why I like this trade:
1. Dal, along with the rest of airlines have reported strong earnings.
2. As of yesterday, Oil has put in a topping signal (for now)
3. Dal is within 1/3 of its' high of 51 making this patterns breakout even stronger.
Have a chart that you would like a second opinion on? Comment below and I'll take a look!
DAL Day Trade PatternHere I point out a "W" trading pattern that could indicate the short term downtrnd can be reversing. W pattern will be confirmed if DAL can hold 45.5 on the next pullback. Excellent risk reward here.
DAL is always on my radar screenTransports lead historically. See weakness in every indicator here. You decide.
DAL Next leg up? 1:3 Risk/Reward tradeI have identified a bullish flag pattern on DAL weekly chart. Flag patterns are a reliable trading pattern which gives you clear entry and selling signals. Flags are a quick to meet targets usually completing in less then 3 weeks time. DAL had a straight $20 run up from its' lows (creating the pole) and then proceeded to consolidate for several weeks (creating the staff). This weeks close above the staff indicates a breakout thus signaling a buying opportunity. you can reasonably take an entry here at 47.07 and place a stop at 45.07. Target for this trade would be 53.30. giving you better then a 1:3 risk reward trade. The sound fundamentals with DAL and the continuing drop in oil prices further validates this breakout.
What chart should I analyze next? Comment Below!
DAL Delta AirlinesLong term supply signal in late Dec warn of distribution up here. Now short term and medium term supply signals have kicked in. New resistance level at 48.01 calculated and plotted. Support at $42.08, then $30.43 Classic short at shoulder of 2014.02.24.
Delta Air Lines-DAL -Daily -Trend Trading with RgMov & CCITREND TRADING WITH RGMOV AND CCI
1. BUYS = Watch for RgMov to make a 2-month high, then buy CCI readings of -100 followed by trading above, then closing above a previous day's high. Exit at 3 ATR rally or when CCI reaches +100 adding each 1 ATR advance. Stop = 3 ATR's OR if RgMov makes a 2-month low on a closing basis (2 months = 44 days)
2. SELLS = Watch for RgMov to make a 2-month low, then sell CCI readings of +100 followed by trading below, then closing below a previous day's low. Exit at 3 ATR decline OR when CCI reaches -100, adding each 1 ATR decline. Stop = 3 ATR's OR if RgMov makes a 2-month high on a closing basis (2 months = 44 days)
There are plenty of other exit strategies - including using a trailing stop once the CCI has reached the opposite extreme. A simple trailing stop can be over/under the 3-day range.
Tim 1:12PM EST, March 6, 2015
DAL Day Trade Retest Gap (Brad Reed Jan20,2015)DAL expected to open at 47.50 for a Retest Gap. To learn to trade this morning for free go to www.RealLifeTrading.com
DAL- The Most Fundamentally Sound Airline DAL is hands down my favorite airline stock. I can't justify executing a long position here as the risk is to great for me right here. I'm a buyer at 42, I'm a thief at 38. But with oil plummeting, it wouldn't surprise me to see DAL hit 55 before pulling back any significant amount. DAL sits atop of my watchlist
Dark Cloud makes Delta cleared for landing.Dark cloud candlestick pattern occurring at the extreme of the Bollinger Bands with momentum divergence showing on both the mac-d histogram and RSI. Looking for price to retrace to the 50 ema or lower Bollinger Band, whichever occurs first.
DAL bullish flag above previous resistanceDAL had been a great trending stock for a couple of years but the 2014 correction was extremely deep (by the standards of this stock).
More recently the June 2014 high was broken but price remained fairly indecisive just above it for a few weeks. Staying above the previous resistance, however, is far superior to dipping below, so this was the first suggestion that the uptrend could resume. The breakout on 28th November did not hold, followed by another on 5th December which also resulted in a small pullback.
Yesterday's bar was far more convincing - a larger, bullish candle on higher volume confirmed the flag formation. But with the $50 half-figure approaching I will hold off on DAL for now (plus I'm already in LUV, another airline).
DAL continue to fly highercontinuation of uptrend after retracement early last week. high trading volume associated with new price peak, suggestive of further upside potential. suit covered call or bull put spread
Airlines selling off to April levels.Troubling to see Airlines selling off , even before the Ebola news. Crude oil plummeting didn't seem to help.
