To The Moon

Hi everyone! Today I’ll be covering an American airline:

Delta Air Lines, Inc. (NYSE: DAL)

DAL has been forming a series of higher lows and higher highs. However, recently, it has been basing in a consolidation pattern that has seen lower highs (bounded by the red resistance trendline) and higher lows (bounded by the green support trendline).

More recently, the stock has broken out of consolidation:

The “breakout and backtest” pattern was observed, with a smaller symmetrical triangle consolidation pattern playing out with lower highs and higher lows. RSI has been following as well with lower highs and higher lows.

A thrust above the consolidation pattern will see the gaps at 40.76-41.48 and 46.79-47.33 filled, before eventually pushing towards the 51.82 high. Given that we’re entering a weak window (towards end-Feb to Mar), it has to break out soon for a sustained run. I’m seeing increased volume over the past few days as we trend higher, so the dips are being bought and it does seem likely we are preparing for a breakout.

Sentiment: BUY

Summary (with Price Targets - NFA):

• Broke out of multi-year consolidation pattern and is consolidating in a smaller consolidation pattern with lower highs and higher lows. Breakout will target the 2 unfilled gaps at 40.76-41.48 and 46.79-47.33, with an eye on the 2.618 Fib extension at 55.19 in the longer term.

• Accumulation of common shares can take place here or on the lower support trendline

• Take into account the seasonally weak window in late February to March, as it could provide for a dip buy. The stock may not necessarily correct but may spend the time consolidating.

Alright, that’s all for this article! See you in the next one :)

@TigerWire @CaptainTiger @TigerEvents @MillionaireTiger @TigerStars

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