Trading Idea: Momentum Building in Delta

New York, August 16th (TradersHuddle.com) - Shares of Delta Air Lines, Inc. (NYSE:DAL) closed the trading session at $9.26 with its price action in a very tight range, given that calculated support is set at $8.97 and the calculated resistance is set at $9.47.

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.

Delta's stock price action indicates that both sellers and buyers are materializing very close to each other. This signals an area where momentum is building, since the stock can resolve by breaking out of the developing tight range.

Traders wanting to establish a position should pay close attention to Delta's price action, as any movement outside its predefined range of $8.97 and $9.47 could grasp the attention of momentum buyers that look for a big movement in the price of the stock. Traders need to be aware that tight range resolution works both ways, hence, a move below support could spark above the average selling. A tiered approach could be the best way to start a position; enter into it while the stock is in the tight range, and then add to this position as it breaks and closes above resistance.

Note - Automated Content Created By TradersHuddle's Technical Scanner




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