Close to the 50 Day Moving Average: Delta

Published on Tuesday, 24 April 2012 09:00 Written by TradersHuddle Wire

New York, April 24th (TradersHuddle.com) - Delta Air Lines, Inc. (NYSE:DAL) closed the trading day at $10.39, near its 50 day moving average that is set at $9.99. Delta's price action is just above this important support level, providing a trading opportunity.

Delta Air Lines, Inc. (NYSE:DAL) provides scheduled air transportation for passengers, freight, and mail over a network of routes throughout the United States and internationally. The company has major hubs in Atlanta, Cincinnatti, Detroit, Salt Lake City, New Jork, Tokyo and Amsterdam.

The peaks and troughs algorithm shows calculated support at $9.78 and calculated resistance at $11.03. These levels should also be evaluated when planning trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on Delta should look for evidence of buying near the 50 day moving average, and open this position as close as possible to this important level. Also, they need to consider the latest range defined by the peaks and troughs algorithm for insights on other key levels that might impact an upside or downside move.