Between November 2012 and May 2014 Delta Airlines had a colossal run that took it from $9 to a staggering $42 dollars in a little bit under a 2-year period. Ever since, $Delta has continued to perform positively; well within the confines of a new channel that feels a lot like an extended ascending triangle maturing into its upcoming apex. This channel can be identified by the dotted lines in the chart. For 6 years now, $Delta’s behavior has been highly predictable much in thanks to market capitulation, quarterly earnings and a booming economy.
At this moment, I can identify a few factors that are making me confident to enter $Delta at its current price level with an initial target of $65.49 (or +11.17% of where it is now). Based on my trend analysis, I believe this price will be reached between the end of March and mid-April 2020.
Besides the trend analysis and tracing I’ve included in the chart, I’ve also corroborated my findings or projection with a confirmation breakout in the MACD on the weekly chart, as can be seen below as well as room for growth in the RSI before it reaches overbought territories.
Once my initial target has been met, a retracement to either the mid-channel support (yellow-dotted line) or the bottom of triangle can be expected. Re-entering at both of these levels is a good, smart way of averaging out your purchase costs before the next impulse begins.
Target: $65.49
At this moment, I can identify a few factors that are making me confident to enter $Delta at its current price level with an initial target of $65.49 (or +11.17% of where it is now). Based on my trend analysis, I believe this price will be reached between the end of March and mid-April 2020.
Besides the trend analysis and tracing I’ve included in the chart, I’ve also corroborated my findings or projection with a confirmation breakout in the MACD on the weekly chart, as can be seen below as well as room for growth in the RSI before it reaches overbought territories.
Once my initial target has been met, a retracement to either the mid-channel support (yellow-dotted line) or the bottom of triangle can be expected. Re-entering at both of these levels is a good, smart way of averaging out your purchase costs before the next impulse begins.
Target: $65.49