Wednesday, April 16, 2014

Delta Air Lines, Inc. (NYSE: DAL)

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo worldwide. Its route network comprises various gateway airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City, Seattle, and Tokyo-Narita. The company sells its tickets through various distribution channels, including telephone reservations, delta.com, traditional brick and mortar, and online travel agencies. It also provides aircraft maintenance, repair, and overhaul services for aviation and airline customers, as well as offers staffing services, professional security and training services, and aviation solutions for third parties; vacation packages; and aircraft charters, and aircraft management and programs. The company has a fleet of approximately 900 aircraft.
Please take a look at the 1-year chart of DAL (Delta Air Lines, Inc.) below with my added notations:
1-year chart of DAL (Delta Air Lines, Inc.)
DAL has come down to a two different levels of support. First, the stock has approached an important up-trending level of support (blue) and, as you can see, has already broken that support. This would imply lower prices ahead for the stock, but first the $33 level (green) will have to be broken.

The Tale of the Tape: DAL has a key area of support at $33, but has already broken trendline support. A long trade could be made at $33 with a stop placed below that level of entry. However, if the stock were to break below $33 traders might want to look to get short on the stock.
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