DAL closes above its opening price after recovering from early selling pressure
Delta Air Lines Inc. (DAL) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
DAL finished the month -10.98% lower at 24.97 after edging higher $0.03 (0.12%) today, underperforming the S&P 500 (0.77%). Trading up to $0.38 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 8th, DAL actually lost -5.04% on the following trading day. 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 Jul 31, 2020):
Friday's trading range has been $0.58 (2.34%), that's far below the last trading month's daily average range of $1.13. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DAL.
Two candlestick patterns are matching today's price action, the Hammer which is known as bullish pattern and one bearish pattern, the In-Neck Pattern.
Delta Air shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 26.30 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "In-Neck Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Delta Air. Out of 1 times, DAL closed higher 100.00% 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 eight trading days, showing a win rate of 100.00% with an average market move of 1.27%.