DAL trade ideas
DAL Keep ClimbingAirlines and other travel based companies definitely got hit the hardest from covid and are still slowly recovering where as other stocks have already recovered and more.
First signaled $18 entry which was a 2013 start of the uptrend and is a monthly level support zone. aka very strong level
Next Best entry placed at $27.60
Target $30.54
Next Target $34.59
Eventual Target $51.41
please don't dump on me Ed Bastian i love delta good airline, my first choice for flying
DAL SwingDAL along with the rest of the travel sector is catching some big buyers as the economy is shifting to its reopening phase. Look for some strong movements along the next couple of weeks as the chart is preparing for a big move too. Sitting directly under the 20EMA and a perfect bounce off the 50 - the stock also caught many buyers yesterday exactly off of the resistance, which is also a sign of strength.
Delta ready to land and take offKeep on your watchlist. $DAL is close to the rebound on the Psychological Barrier
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U.S. airlines see recovery signs, United expects to end cash burU.S. airlines on Monday pointed to concrete signs of an industry recovery as a slowing COVID-19 pandemic helps leisure bookings, and United Airlines said it expects to halt its cash burn in March, sooner than forecast.
"I do think we're near the end of the virtual world," United Chief Executive Scott Kirby said at a J.P. Morgan conference.
In January, United said an average daily core cash burn of $19 million in the fourth quarter would likely continue in the beginning of 2021, with improvements dependent on a recovery in demand.
Now it expects core cash burn to be positive in March, Kirby said. That is expected to continue after March, assuming the current bookings trajectory remains in place, he said.
Chicago-based United, which had been among the most pessimistic of the airlines heading into the pandemic a year ago, is the first to say it could hit the industry's cash burn milestone.
Shares of United surged 9% to $61.49 in morning trading. The Dow Jones U.S. Airlines Index was up 5%.
Delta Air Lines, Southwest Airlines and JetBlue Airways each said first-quarter revenue would decline at the low end of projections or less than previously forecast as vaccine rollouts accelerate and more people plan vacations or visits to friends and relatives
Delta CEO Ed Bastian, speaking at the same conference, said there are "real glimmers of hope" and that he was "cautiously optimistic" that the airline could halt its cash burn this spring.
More than 1.3 million passengers were screened in U.S. airports on Friday and Sunday, according to Transportation Security Administration data, the highest number since the pandemic crushed air travel in 2020.
Delta, which said it will use cash for aircraft purchases in the second quarter, expects its first-quarter revenue decline to be at the low end of its forecast for a 60% to 65% decline from the same quarter in 2019, before the onset of the pandemic.
Southwest forecast lower cash burn in the first quarter on Monday and a lower decline in operating revenue for February and March than previously forecast.
JetBlue also forecast a slowing pace in its first-quarter revenue drop, projecting a decline of between 61% and 64%, compared with the same period in 2019. It had previously forecast a fall in revenue of 65% to 70%.
American Airlines, the most leveraged U.S. airline, also said on Monday that bookings had increased but did not provide concrete guidance. However, its CEO said the company is not looking to raise any more financing after a $10 billion debt deal last week.
$DAL (Wkly) - LongSee chart for details
*Aggressive entry hence risk level is also aggressive to get out quick if wrong.
Predicting a Bullish market for DAL with some minor pullbacks. Expect some pullbacks along the way but DAL seems to be headed bullish and should reach the target of $57.00 potentially higher. This will be the full recovery Pre-Covid.
Wait for DALDelta with strong potential up move, but we need to wait a little bit for it, this price still are not realistic :)
NYSE:DAL
$DAL$DAL given upgrade to buy with PT $55. Right below strong resistance but breakout from here and it can run another $5-10. I missed a great opp to play off $37.67 support that bounced off the 21 day EMA
And we're OFFThere is evidence all over the place for DELTA AIRLINES. Based on the info presented before our eyes. This seems like a NEW BEGINNING for the LOOOOOoong Run.
Delta Air line ***Based on analysts offering 12 month price targets for DAL in the last 3 months.
The average price target is $48.77 with a high estimate of $58 and a low estimate of $40
Analyst Firms Making Recommendations
B OF A GLBL RES
COWEN & COMPANY
DEUTSCHE BK SEC
JEFFERIES & CO.
JP MORGAN SECUR
MORGAN STANLEY
RAYMOND JAMES
SEAPORT GLOBAL
STIFEL NICOLAUS
VERTICAL RESEAR
WOLFE RESEARCH
Analyst
$48.77
*** Insiders are buying five times than selling !!! AAl no trading al all !!!
Insider Ownership Percentage: 0.63%
Insider Buying (Last 12 Months): $46,108,962.00
Insider Selling (Last 12 Months): $203,118,704.06
*** no shorts interest to mention.
***Assets a bit more than liabilities which is better than American Airline.
Period Ending: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Total Assets 72051 64532 60266 53671
Total Liabilities 70698 49174 46579 41141
Total Equity 1353 15358 13687 12530
***Strong institutional ownership is an indication that hedge funds, large money managers
and endowments believe a company will outperform the market over the long term.
Well, Delta airline is ranked # 3 beating AAl
73.1% of Alaska Air Group shares are owned by institutional investors
-60.9% of United Airlines shares are owned by institutional investors
-59.5% of Delta Air Lines shares are owned by institutional investors
--44.4% of American Airlines Group shares are owned by institutional investors
Period Ending: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Total Revenue 17095 47007 44438 41138
Gross Profit 4615 25872 23248 23006
Operating Income -12469 6618 5264 5966
Net Income -12385 4767 3935 3205
✈️ Delta Air Lines: Pre-Covid levels in sight ✈️Scanning through higher time frame charts, NYSE:DAL caught my attention. The stock has been beaten down with the whole industry due to the Covid pandemic. Shares sold off heavily in February and March 2020, dropping about 70% from pre-Covid levels. Bottom was established on 14 May las year at $17.51. Since then though, the stock has been in a relatively clean up-trend, with higher lows and higher highs clearly established along the way.
In addition, last week's close confirmed a continuation pattern by breaking out from a bull flag. Probabilistically speaking, this is a very potent setup, especially as the flag formed over a period of two months.
Be cautious of resistance around $45 as this level served as multi-year support in 2017 and 2018 and has not yet been tested from the downside after it was broken in March last year. I expect prices to at least stall at this level before we get a continuation to the upside. Next reference point is the $55-57 zone, which is the unfilled gap from last week of February 2020. I expect this gap to act as resistance, however if it starts filling up, prices might move through it quickly.
So the technical view is clear. How about fundamentals?
Delta was the first major airline to report Q4 earnings earlier this year. There was definitely more optimism compared to several large competitors. But I'm conscious that might have been due to the holiday travel spike and the fact they reported to shortly after. Anyhow, sentiment and market perception seems to be more positive than competitors who reported later or are yet to report.
There has been lots of talk about the middle seat policy. The policy was widely rolled out almost a year ago in order to prevent Covid transmissions through social distancing measures. However as other airlines have started to unblock the middle seat rule, this policy is mostly perceived as a demand indicator. And the fact that Delta extended the middle seat rule on 8 February can be viewed as lack of demand. However they did only extend for 1 month, which is less than previous extensions. This suggest that we're getting close to a point where demand will be strong enough to warrant unblocking the middle seat. And when that happens, expect it to serve as a strong catalyst for he stock price.
In the end of January, the company announced that they're bringing back 400 pilots. Granted, this is only a small portion of it's 12,000 pilots. But still it's well ahead of when Delta originally estimated they would be able to convert pilots back to full flying status. And it shows their confidence in the projected recovery going into summer season.
📝 Summary 📝
I'm confident to recommend a buy position in Delta Air Lines based on both technical and fundamental reasons described above. Stay mindful of the $45 and $55 resistance levels and watch out for updates on the middle seat policy.
DAL Short Price is in bearish structure, retraced to correct the downward pressure, and moved down. Fundamentals: The gameplan to turn the company around is to attract customers via low prices and package deals (flight + hotel + cruise lines). However, the CEO does state all of this is dependent on the vaccine rollouts. The US is behind other nations when it comes to vaccine rollouts and some states such as NY also mentioned the shortage of supplies they were encountering. Also, the CEO acknowledges the first two quarters of the year will be difficult for the company and they will control their cash burn to turn around the third quarter.
$DAl with a neutral outlool after earning releaseThe PEAD projected a neutral outlook for $DAL after a positive over reaction following its earning placing the stock in Drift B
If you would like to see the Drift for another stock please message us. Also click on the Like Button if this was useful and follow us or join us.
DELTA Airlines Make a higher Low and divergence could be a reversal area for good entry. 200 SMA right there for provided support. easy to size up risk with Monthly macd turning positive and showing regular divergence. currently testing the .50 dow theory fib retracement.
DELTA AIRLINES - SERIOUS BEARISH TREND (WEEKLY CHART)--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
DISCLAIMER: I have no political affiliation, constitutional or governmental bias when publishing these forecasts. They are my own opinion as I personally see the market.
All Charts forecast are NOT Financial advice, I am not a financial advisor, nor is this financial advice. It is for educational and personal trading purposes only.
TRANSPARENCY: Any 'STOCK' I publish/forecast, on Tradingview, means I own a percentage of stock in the listed company and I am sharing with the tradingview community my thoughts, good or bad.
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DELTA AIRLINES (DAL) has a serious BEARISH trend pattern that has already been confirmed by the break in the bullish trendline marker as well as a confirmed Level 3 High and an almost completed Level 1 correction.
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THE FUNDAMENTAL ANALYSIS
The fundamental aspects of this stock are particularly dependent on:
1/ Number of customers that fly Delta
2/ The behavior of Delta Staff (includes BOTH Upper Management AND Flight Crew)
3/ Public Health Issues: eg. Covid
4/ Political bias/affiliations
I shall analyze each important fundamental part below
1/ Number of Customers that fly Delta: In a public announcement here: https:// news . delta . com/delta-flew-record-number-customers-summer-heres-how
Delta claims that "records made and broken" where Delta claims "Between May 24 and Sept. 3, Delta flew nearly 60 million customers, including the airline’s new record customer enplanement day on July 26 when nearly 662,000 flyers took to the skies on a single day."
The figures certainly show strong customer loyalty and engagement, yet this is not reflected on the stock price!
2/ The behavior of Delta Staff is of Great concern, especially when politically or socially motivated behavior is publically broadcast on both mainstream and alternative media.
I have always been a supporter of good business and health/safety practices, for both staff and customers. However in lieu of the current COVID situation together with political bias, has somehow turned an Airline into a social justice warrior platform where Staff (both upper and lower management) feel the need to become health experts and police.
The fact of the matter is, Delta airlines is a TRANSPORT company, they transport both humans AND freight, together and/or separately. Thus Delta Airlines is NOT a medical institution nor is it a law enforcement authority. So the question must be asked, WHY does Delta Airlines force customers to wear masks in states where Marks are NOT compulsory? WHY does Delta Airlines punish customers because children younger than 2 (which are NOT required under the CDC guidlines: https:// www . cdc . gov /coronavirus/2019-ncov/prevent-getting-sick/cloth-face-cover-guidance.html) do not wear a mask? Delta Airlines is a TRANSPORT company, NOT a Medical Institution or regulatory body, thus should NOT be forcing customers to wear any masks that are not compulsory in the state of embarcation, nor should they be punishing customers that do not follow these regulations either. Law enforcement should be left up to law enforcement angencies NOT Airlines or Transport companies !
Why do this matter? Because this kind of behavior digs into the bottom line (profit) of the airline, thus reducing returns and decreasing the value of the stock, as Delta is totally dependent on it's customer base, NOT the government, law enforcement or the medical regulatory body. This is Disgraceful behavior and marginalises all customers, ultimately forcing them to fly with another airline.
This is NOT correct business practice, it is called virtue signalling which has NO PLACE in Business !
3/ Public Health Issues is of major concern, especially during the Covid situation. However, there are MANY problems relating to this issue with regards to Delta where the bahavior of upper management is just as immature and dangerous as lower management and staff.
a) The first issue is the number of complaints that have arisen after the CEO Ed Bastian, confirmed that the airline would continue to add customers to a No-Fly List because customers did not wear face masks. See article here: https:// simpleflying . com /delta-no-fly-list-mask-refusal/
The problem with this behavior, as mentioned above, is that Delta Airlines is a Transport company, NOT a medical institution or regulatory body, nor is it a law enforcement agency.
More than 80% of the people listed on the no-fly list, were not wearing masks in states that did not require compulsory the wearing of masks in that particular state of embarcation. Delta upper management claim that they are following laws and the best practices of the CDC, however the CDC actually says that wearing of masks is NOT effective in stopping the spread of a 'virus', as well as all manufacturer's labelling of facemasks used, by Delta Staff, also confirms that the masks do NOT stop the spread of viruses. Therefore because Delta Airlines is a Transport company and it relies on it's customer base to continue to fly with Delta, WHY would the CEO Ed Bastian, prefer to endanger the core business of Delta and it's reputation for customer service, in place of virtue signalling?
Even in the above Delta Airlines article mentioned, you will see a photo of a cleaner, cleaning the seat table with gloves and a cloth, professing to 'stop the spread of the virus' yet the person in the photo is not even wearing a mask! Talk about contradictory!
WE DO NOT PAY MR. ED BASTIAN'S SALARY TO BE A SOCIAL JUSTICE WARRIOR AND VIRTUE SIGNALLING NUTCASE !
b) As mentioned many times, Delta Airlines is a Transport company, NOT a Law Enforcement agency or a Medical regulatory body or agency. Delta Airlines are NOT licensed to give medical advice, nor are they licensed law enforcement. So the question needs to be asked, because Delta do not have a medical or law enforcement license, WHY are they allowed to continue to punish customers that are loyal to Delta Airlines? Does Delta Airlines staff not know what loyalty and good business means? It is not the job of Delta Airlines to police wearing of masks or the 'spread of the virus'. All Delta airlines should do is follow guidelines for staff and customers, however it must be understood that the ownus is on the customer to comply with constitutional and state law. Delta do not make the laws, they are not a law enforcement agency and they are not licensed medical staff. Leave the law enforcement to the law enforcement agencies and the licensed medical professionals.
Why does this matter? Because CEO Ed Bastian is NOT doing his job and in my opinion should be replaced with someone who understands business that isn't politically motivated or a virtue signalling lunatic.
4/ Political Bias/Affiliations is of grave concern because Delta Airlines should be a customer focussed business that relies on more customers flying with the airline providing exceptional customer service and NOT a adjudicator of political bias or a exclusionary service based on people's race, color or creed. Customers that fly with Delta Airlines are from all walks of life and differing political sides. Delta Airlines has NO PLACE to deny passengers the ability to fly (thus contribute to the Airline's profit/bottom line as this is what business is about). Today I have read an article that was the last straw for me, which has forced me to sell ALL my Delta Stock because it is no longer a viable business model, but more rather a social justice warrior platform for disgruntled virtue signallers that have no intention of growing a customer orientated airline which relies on the very customers that Delta are marginalising.
Here is just one example of the Delta Airlines upper management madness: https:// www . conservativereview . com /delta-bans-trump-supporters-who-heckled-republican-senators-at-airport-from-flying-on-airline-2649938829.html
In this article, Delta Airlines announced that on Thursday 14th Of January 2021, it has banned people that were classified as 'Trump supporters', thus from a particular political affiliation/wing.
As mentioned above, the function of Delta Airlines is supposed to be customer orientated service and inclusionary (not exclusionary / discriminatory) practices. As the article clearly shows, there is clear DISCRIMINATORY BEHAVIOR which is not only illegal, it is also contrary to good business and social standing. It is NOT the function of Delta Airlines to enforce law as Delta Airlines are NOT law enforcement and it is certainly not good business to marginalize or restrict ANY PERSON based on any discriminatory or political bias. Yet it is clear that the CEO of Delta Airlines, Mr. Ed Bastian, is clearly a democrat or at the very least, politically biased. Mr. Ed Bastian is NOT PAID A SALARY TO BE POLITICALLY BIASED and to BAN CUSTOMERS FROM FLYING DELTA !
If Mr. Ed Bastian was seriously concerned about those particular Delta Airlines customers (that under his request, have been banned), he should have raised the issue with licensed law enforcement and not take it upon himself to judge people. Additionally it should be noted that Delta Airlines is NOT a judge and jury, they do NOT determine who is guilty or not, that function is for a proper court of law and or jury of peers, NOT an airline.
If this is not a clear enough example, then the equestion MUST BE ASKED, WHY has Delta Airlines CEO Mr. Ed Bastian, NOT put Senator Tim Kaine, Kathy Griffin, Loretta Lynch, Sarah Silverman, Madonna and Snoop Dogg, (just to name a few of MANY), on a no fly list ? Political Bias has NO PLACE in Business and it is not only a disgrace but also against proper business practice which should have already resulted in Mr. Ed Bastian's removal. Here is the PROOF of the names just mentioned that were promoting VIOLENCE AND DESTRUCTION against the President and his family and supporters.
https:// conservativepost . com /here-are-10-times-democrats-called-for-violence-against-trump-and-republicans-since-election-day/
Here is yet an explanation on WHY CEOs should not engage in cancel culture: https:// www . thegatewaypundit . com /2021/01/ceos-prosecuted-criminally-rep-devin-nunes-calls-criminal-charges-tech-giants-video/
And when this happened: https:// www . thegatewaypundit . com /2021/01/flashback-storming-us-capitol-ok-2018-democrats-communists/ Did Delta CEO Ed Bastian add these people to the no-fly list? No he didn't!
For those of you that disagree with my analysis, I request that you put yourself in my shoes and when you hold a significant amount of value/stock with Delta, and you see this kind of behavior, and when you analyse the value/chart (the chart never lies) and you see such a dramatic drop, with core indications that this particular company is headed for disaster, mostly due to it's attitude with it's customers, then the only logical step is to dump ALL STOCK and invest money more sensibly into a much more productive company such as Tesla who's CEO and staff do not spend their time virtue signalling and cancel culturing the very customers it relies on.
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Now for the TECHNICAL ANALYSIS:
After a significant period in a Markup Channel, a Level 3 had formed with a High of $63.44 before a small correction and then a significant dump initially due to the Covid situation.
Price action then followed swiftly to break the bullish trend at around $51.54 before plummeting to a low of $17.51 which is a drop from the high, of a whopping $45.93 or almost 73% !!!
A correction ensued to a high of $43.76, however in lieu of the current circumstances noted above in the fundamental analysis as well as the market structure being in a Level 1 pattern, the next destination is a bearish drop again to around an area which I evelive would be to approx $9.89 with a corrective factor high at approx 18.38 where an Orderblock has been tested and will become a breaker once the drop to $9.89 for a level 2 structure is confirmed. The most troubling part of this is not over due to the fact that after a level 2 move has been completed, a level 3 must ensue.
In the chart above you will notice that I have made a Red line across from previous structure where a previous Double Bottom was formed. This is an area of interest where there is much liquidity stored and ready for 'collection' by MMs. The Low at $3.51 is also present which lends even more credibility to the area of interest, which is where I believe the bottom of this current cycle will end, at around $3.51 to $2.23.
Note that in the TDI indicator, we also see RSI just out of the full overbought area/cycle, which means we should continue to see more downward price action to complete the RSI pattern towards the oversold area.
Therefore based on all of the above analysis, I have now closed my position, effectively selling my entire stock of Delta Airlines, before the next move down occurs and another 70+% is removed from the value of the stock. This is also a big warning to Delta Stock holders, to DUMP before the inevitable happens.
This concludes my analysis for Delta Airlines (DAL).
