Straight Up, to Resistance

Delta’s latest earnings release provided an excellent opportunity for a ‘changing of hands’.

We’ll have to see what happens next, to verify that premise (not advice, not a recommendation).

In a scene that could be straight out of Livermore and Wyckoff’s observations, the big players need huge volume to enter or exit positions.

For Delta, that volume event was (potentially) last Thursday.

Delta DAL, Daily

Stright up to resistance on massive volume.

Then, the next day, a lower close.

There’s a lot going on in this chart.

As noted, we’re at the 61.8%, retrace of the entire move; January 22nd, highs, to ‘tariff panic’, April 4th, lows.

The initial wave from highs-to-lows, was ‘impulsive’.

Then, and a-b-c, ‘corrective’ wave (labeling not shown), to where we are now.

All of which, brings us to ‘positioning’

Positions

As noted, short this sector as trade DAL-25-02; stop, just above Thursday’s high (not advice, not a recommendation).

Other Markets

Discretionary exit on SOXX short, SOXX-25-04, at break-even (not advice, not a recommendation).

Maintaining Wal-Mart short, WMT-25-04, with stop lowered to 96.78 (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279