OptionsRising

What will next airline earnings reveal?

Short
OptionsRising Updated   
NYSE:DAL   Delta Air Lines, Inc.
For the many who have bought up airline stocks, it might be time to take profits, or at least have stop losses in place.

I see two signs that Delta's stock will move lower post-earnings
1) At the start of Oct. and Nov. price went over the resistance line and prompted weeks of selling. These were bull traps.
2) On the daily chart, RSI dipped below 33.33 and then reversed under 66.66. This should lead to RSI below 50 and lower prices.
Comment:
I forgot to mention that the chart leans bearish, but not strongly, so the bullish view is that the two price moves over resistance will lead to a stronger upside move post-earnings. In this case RSI should move over 70 and then stay over 50.
*** 11 Jan update: there is a 30m stochastic bear warning and I see 200ma as resistance on 5m chart. I bought puts as price came up to 41.
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.