A Takeoff and Bounce Reversal for Delta Airlines DAL

Jul 15, 2015: 12:28 PM CST

Recently we’ve been discussing the “Arc Trendline” Pattern in high-flying Delta Airlines (and similar companies) but now we’re seeing a lift-off and reversal bounce precisely at a key support target.

Let’s see the lift-off, update our key levels, and plan what to expect going forward.

First, start with the previous update on the “Arc Trendline Pattern Continues” for Delta.

Also reference the prior post “High Flying Airlines Completing Arc Reversal Pattern.”

Compare the analysis then with the current bounce/reversal play occurring at the target mentioned.

After price completed the Arc Pattern into the $40.00 per share target level, a lengthy positive momentum divergence (highlighted) set the stage for a lift-off in shares.

That’s what we saw in early July – confirmed by volume – and the bullish surge continues today.

We’re focusing on the falling moving averages into the $43 per share level and price (buyers) is powering through the clouds (resistance) today above $44.00.

We’ll focus attention here and on the potential for even higher prices into the future.

Here’s a Weekly Chart to give us perspective of the high-flying uptrend in motion:

Shares have moved up from the $10.00 per share level all the way to $50.00 in early 2015 ahead of the “Arc Reversal” pattern.

The “Arc Reversal” took the form of another potentially large Bull Flag or declining trading range which may have ended here at the $40.00 target level.

Price is moving up toward the $45.00 pivot at the upper trendline – see late 2014 – and will either break powerfully above it (bullish above to continue the weekly chart trend) or else stall into resistance (focus on this level on the daily chart).

Either way, you can study this stock – and similar airline names – for additional trading lessons.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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1 Comment

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