DAL closes higher for the 2nd day in a row
Delta Air Lines (DAL) Technical Analysis Report for Oct 12, 2018
Moving higher for the 2nd day in a row, DAL finished the week -1.23% lower at 52.05 after gaining $0.57 (1.11%) today, slightly underperforming the S&P 500 (1.42%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DAL as at Oct 12, 2018):
Friday's trading range has been $1.35 (2.57%), that's slightly above the last trading month's daily average range of $1.24. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for DAL.
Prices are trading close to the key technical support level at 51.28 (S1). After having been unable to move above 52.60 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 52.71. The last time this happened on Tuesday, DAL lost -2.26% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 52.93 where further buy stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Close to S1 Support" stand out. Its common bullish interpretation has been confirmed for Delta Air. Out of 1,204 times, DAL closed higher 52.57% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.82% with an average market move of 1.25%.