DAL breaks below Monday's low
Delta Air Lines Inc. (DAL) Technical Analysis Report for Oct 27, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DAL ended Tuesday at 30.71 losing $1.22 (-3.82%), significantly underperforming the S&P 500 (-0.3%). Today's close at 30.71 marks the lowest recorded closing price since September 30th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 31.53, Delta Air confirmed its breakout through the previous session low after trading up to $0.84 below it intraday.
Daily Candlestick Chart (DAL as at Oct 27, 2020):
Tuesday's trading range has been $1.37 (4.31%), that's slightly above the last trading month's daily average range of $1.13. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DAL.
One bearish candlestick pattern matches today's price action, the Black Candle.
The market closed below the 50-day moving average at 31.26 for the first time since September 24th. When this moving average was crossed below the last time on September 24th, DAL actually gained 2.65% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to October's low at 29.61, downside momentum might accelerate should the share mark new lows for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Delta Air. Out of 301 times, DAL closed higher 58.14% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.15% with an average market move of 0.97%.