DAL pushes through key technical resistance level
Delta Air Lines Inc. (DAL) Technical Analysis Report for Jan 13, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, DAL ended Monday at 59.49 gaining $0.25 (0.42%) on high volume, slightly underperforming the S&P 500 (0.7%). The bulls were in full control today, moving the market higher throughout the whole session.
Daily Candlestick Chart (DAL as at Jan 13, 2020):
Monday's trading range has been $0.67 (1.14%), that's below the last trading month's daily average range of $0.90. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for DAL.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on November 26, 2019, DAL lost -0.68% on the following trading day.
Buyers managed to take out the key technical resistance level at 59.39 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying might move prices higher should the market test December's close-by high at 59.92.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Delta Air. Out of 70 times, DAL closed higher 52.86% 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 52.86% with an average market move of 0.11%.