Delta Air Lines, Inc. (NYSE: DAL)

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo worldwide. Its route network comprises various gateway airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City, Seattle, and Tokyo-Narita. The company sells its tickets through various distribution channels, including telephone reservations, delta.com, traditional brick and mortar, and online travel agencies. It also provides aircraft maintenance, repair, and overhaul services for aviation and airline customers, as well as offers staffing services, professional security and training services, and aviation solutions for third parties; vacation packages; and aircraft charters, and aircraft management and programs. The company has a fleet of approximately 900 aircraft.

Please take a look at the 1-year chart of DAL (Delta Air Lines, Inc.) below with my added notations:

1-year chart of DAL (Delta Air Lines, Inc.)

DAL has come down to a two different levels of support. First, the stock has approached an important up-trending level of support (blue) and, as you can see, has already broken that support. This would imply lower prices ahead for the stock, but first the $33 level (green) will have to be broken.

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The Tale of the Tape: DAL has a key area of support at $33, but has already broken trendline support. A long trade could be made at $33 with a stop placed below that level of entry. However, if the stock were to break below $33 traders might want to look to get short on the stock.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT

Follow me on Twitter: @cmtstockcoach