Good Setup Developing in Delta
Published on Wednesday, 28 November 2012 06:44 Written by TradersHuddle Wire
New York, November 28th (TradersHuddle.com) - Delta Air Lines, Inc. (NYSE:DAL) closed the trading day at $9.82, near its 50 day and 200 day moving averages set at $9.74 and $10.04 respectively. Delta's price action placed the stock above the 50 day moving average but below its 200 day moving average, providing a nice trading setup with clear reference points.
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 seems to be setting up for a tight range between the 50 day moving average as support and the 200 day moving average serving as resistance.
A tiered approach appears to be the best way to maximize possible movements in the stock, as traders could establish a small position in Delta and wait for the stock to break out above the 200 day moving average at $10.04. Then they could add to the position as momentum builds with the breakout. On the other hand, if support being referenced at the 50 day moving average set at $9.74 breaks, it could signal further downside for Delta in the horizon.