Delta Airlines taking off again

Delta airlines weeklyDelta Airlines is a stock I analyzed at length in my post of the 23rd October (https://www.annacoulling.com/stock-trader-tips/a-classic-chart-for-delta-airlines/)  and in particular the climax in volume which was giving us a clear picture of an accumulation from March through to August, and with it the expectation of a new campaign being prepared by the market makers and as such the development of a longer-term trend higher. As of yesterday the stock has moved from $33.72 to yesterday’s closing price of $37.91 and was given an injection of momentum on Wednesday with the gapped up open which took the stock well above the strong resistance level which until then had been developing in the $34 per share area and denoted by the red dashed line of the accumulation and distribution indicator.

This had capped off previous rallies, but is now,  of course, acting as a strong platform of support to the rally higher which is developing nicely. And there is further good news ahead for the stock, first with the low volume node on the y-axis which extends from $40 per share through to $42 per share, and thereafter there is relatively light volume acting as resistance through to $6o per share and beyond. The main stumbling block for Delta comes from price-based resistance with the blue dashed line at $49 per share representing a solid barrier that will need to be overcome, along with a further less significant level beyond at $52 per share and denoted with the red dashed line.

So some good news for Delta Airlines in an industry that has been battered by the virus as the stock price looks set to continue higher delivering a steady return for longer term investors, and this positive picture is also supported by the trend monitor indicator below.

By Anna Coulling

Charts from NinjaTrader and indicators from Quantum Trading

About Anna 2009 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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