Delta Airlines (DAL) Swing Trade Level Coming Up

Shares of Delta Airlines (DAL) are fell 16% today as the market continues to worry about COVID-19 and the implications for the airline industry. Last week, Delta Airlines traded as high as $36.00 and now hovers at $24.00. Its pandemic low was two weeks ago at $19.00. This tells us that a pivot low is still in place and swing traders can look to nibble at the RIGHT technical level. Per the stock chart, there is an epic gap-fill approaching at $22.25. This technical support is worth a quick swing trade, considering if it hits in the next few days, Delta will have dropped from $36.00 to $22.00 with no major bounces. Is it possible Delta can hit $19.00? Yes, of course, anything is possible in this market environment but the odds do favor a 10-15% bounce off the gap fill at $22.25.

I will be looking to take this trade if it tags in the next day or two. Beyond that, the time factor for technical trading would be out of alignment and I would avoid it. Once traders and investors understand the importance of time when investing/trading, it changes the game. A level that was good a day ago may not be good today. Keep that in mind and learn, learn, learn!

(Click on image to enlarge)

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.