Trading Idea: What to Expect as Delta Breaks Resistance

Published on Wednesday, 20 June 2012 07:20 Written by TradersHuddle Wire

New York, June 20th (TradersHuddle.com) - Shares of Delta Air Lines, Inc. (NYSE:DAL) closed the session at $10.91 just above calculated resistance at $10.70. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

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 stock was trading in a well defined range with support at $9.89 and resistance at $10.70. Given that this range was broken, traders will be closely monitoring Delta's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Delta is still near the broken resistance level, traders will be focusing on the $10.70 level to see if the stock holds the breakout without rolling over.