DAL closes lower for the 2nd day in a row
Delta Air Lines Inc. (DAL) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DAL ended the week 1.69% higher at 58.90 after edging lower $0.23 (-0.39%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DAL as at Feb 14, 2020):
Friday's trading range has been $0.89 (1.5%), that's below the last trading month's daily average range of $1.35. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DAL.
Unable to break through the key technical resistance level at 59.39 (R1), the stock closed below it after spiking up to 59.47 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on Wednesday, DAL lost -0.57% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 59.92 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 58.35 where further sell stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Delta Air. Out of 296 times, DAL closed higher 57.43% 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 57.43% with an average market move of 1.04%.