While we’re watching the stock price of United (NYSE:UAL) and the passenger incident, we’re perhaps not watching what’s happening with Delta Air Lines, Inc. (NYSE:DAL) stock, which is at a critical pivot price. What’s going on with Delta’s stock and how might it be ready for a bounce off a key target? Let’s see:
Written by Corey Rosenbloom
…In the Daily chart below we see a standard pullback to the 50% Fibonacci level just above $44.00 per share.
We’re also seeing four (potentially) bullish reversal candles develop AT this critical price pivot.
Let’s step inside the intraday chart to note the build-up of positive divergences and how to frame a trade:
Keeping the higher frame targets (such as the $44.30 level) in mind, note the build-up of positive momentum divergences into today’s session. From there, we’re seeing at least an initial rally higher toward the underside of the falling trend line at $45.50.
Here’s the plan – carefully monitor the additional ascent toward the trend line and then consider buying a potential breakout beyond the $45.50 level to play toward $47.00 per share. It’s a short-term trade, sure, but it will be interesting to see what happens next with this stock that’s happy to see a competitor take negative press/headlines for once.
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