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.
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