DAL still stuck within tight trading range
Delta Air Lines Inc. (DAL) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
DAL ended the month 11.27% higher at 28.05 after losing $0.56 (-1.96%) today on low volume, notably underperforming the S&P 500 (1.54%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DAL as at Jun 30, 2020):
Tuesday's trading range has been $1.06 (3.74%), that's far below the last trading month's daily average range of $2.15. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for DAL. Prices continued to consolidate within a tight trading range between 26.24 and 28.99 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After having been unable to move above 28.82 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 28.66. The last time this happened on June 26th, DAL actually gained 6.32% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 28.82 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 26.24 where further sell stops could get activated. As prices are trading close to June's low at 25.08, downside momentum might speed up should Delta Air mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Delta Air. Out of 574 times, DAL closed higher 52.44% 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 52.26% with an average market move of 0.81%.