DAL closes within prior day's range
Delta Air Lines Inc. (DAL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, DAL ended Thursday at 31.70 edging higher $0.60 (1.93%) on high volume, strongly underperforming the S&P 500 (6.24%). Trading $3.28 higher after the open, Delta Air was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DAL as at Mar 26, 2020):
Thursday's trading range has been $5.47 (16.77%), that's slightly above the last trading month's daily average range of $4.46. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for DAL.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns.
Unable to break through the key technical resistance level at 33.46 (R1), the market closed below it after spiking up to 35.89 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on March 6th, DAL lost -5.16% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Delta Air. Out of 423 times, DAL closed higher 50.83% 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 56.26% with an average market move of 1.06%.