Delta Airlines (DAL) rising nicely

Delta airlines DAL weekly chartDelta Airlines is a stock I first highlighted back on October 23rd when it was trading at $33.72. The reason I had this on my watchlist was simple. The chart was a classic buying climax and therefore signaling a new campaign was being prepared with the stock set to rally on any low volume tests. Since then we have seen the price rise nicely and closing last week at $41.06 with an upspread candle on good volume. This had been preceded in the previous week with a decline in selling volume and therefore a good sign of a further move higher which was duly delivered. So where next for this stock? As we can see from the weekly chart there is little in the way of price resistance from the accumulation and distribution indicator, the next level well above is at $49.50 denoted with the blue dashed line. In addition, volume on the VPOC histogram falls away dramatically above $40 per share and through to $50 per share, so all good news on this timeframe, and as such we can expect to see Delta Airlines continue to gain height over the coming weeks, perhaps with the tailwind of any Santa Claus rally also helping.

By Anna Coulling

Charts from NinjaTrader and indicators from Quantum Trading

About Anna 2016 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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