Don't Ignore This Chart!

Delta Air Lines Reverses with Outside Reversal Day


Airline stocks are moving higher again with solid gains across the board over the last two weeks. The PerfChart below shows the performance for the Airline ETF (JETS) and seven other airline stocks since mid November. All are up with Alaska Air (ALK), Southwest (LUV) and COPA Airlines (COPA) sporting the biggest gains.  

The next chart shows Delta (DAL) with the 50-day EMA above the 200-day EMA over the last eight months. Even though the stock dipped below the 200-day EMA several times this year, this golden cross has been active since November 2016. Most recently, the stock reversed near the 61.8% retracement with a gap up in mid November. The outside reversal day formed on Tuesday and the stock broke resistance with a surge on Wednesday. It looks like the bigger uptrend is continuing and this means Delta could challenge its summer highs in the coming weeks. 

Thanks for tuning in and have a great day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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