Trading Idea - Delta Broke Resistance, What to Expect?

Published on Friday, 03 September 2010 05:36 Written by Christian Paolinetti

New York, September 3rd (TradersHuddle.com) - Shares of Delta Air Lines, Inc. (NYSE:DAL) closed the trading session at $10.84 just above calculated resistance at $10.78 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

Delta Air Lines, Inc. 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 was trading in a well defined range with support at $9.60 and resistance at $10.78, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Delta's stock is still near the broken resistance level, traders will be focusing on $10.78 to see if the stock holds the breakout without rolling over.