DALD trade ideas
Smarter than Buffett?"Delta plunges after Warren Buffett's Berkshire Hathaway slashes its stake" is the morning's headline following the announcement. As investments I don't know why anyone would want to own airlines. They are too exposed to all kinds of risk... world economic factors, energy, terrorism, and now plagues. But to trade airlines... the contrarian in me combined with a price action alert makes me want to test for an opportunity. Earnings are this week and I do not expect anything they say to help or harm what is already known; that Delta is burning through a whopping $60 million per DAY! So while there is some earnings gap risk I'm going to keep my position small and exploratory. Let's see if this is the double bottom of the Daily.
Delta Airlines WeakensAlthough talks of stimulus bills are circulating in the airline industry Delta Airlines is showing little strength after the news. The stock takes a quick rally upwards to only find itself loosing half of the gains shortly after. The downtrend continues to hold strength in the short term market
$DAL can fall in next daysContextual immersion trading strategy idea.
Delta Air Lines attempted to reverse the trend yesterday. The attempt was failed.
Today stock opened lower than yesterday's close price and continue falling.
Despite oil prices falling, the general condition for this stock is shortable due to COVID-19 panic.
Profit from lower oil prices is not enough to cover losses from lower passenger traffic.
I suppose the price will be falling in the next days. So I opened a short position from $42.40;
stop-loss — $44,36 — over today's high;
Information about take-profits will be later.
Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision.
Always do your own analysis before making deals. When you use any materials, do not rely on blind trust.
You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy.
If you like my content, you can subscribe to the news and receive my fresh ideas.
Thanks for being with me!
Delta Depression breakdown analysis: where is the support?With this last downleg, we have hit the 0.5 fibonaci level, in one break out. and it its not over.
If this is the beginning of a longer term downtrend, after we break support, the next support seems to be around 10/7/5 dollars, where I think volitle accumulation will happen, before consolidating around 10$ and moving again.
Look for one or two weak impulses to the upside to take short positions, stop loss at 37, with profit targets at 23-20, 12, 8.
Delta Air line long set upon pullback BUY DAL OPTION
Price target $54 Price target 2 57.68
Warren Buffett famously advises investors to "be fearful when others are greedy, and be greedy when others are fearful." The billionaire investor's Berkshire Hathaway conglomerate showcased that approach last week: It boosted its stake in Delta Air Lines during the massive market selloff fueled by coronavirus fears.
Berkshire deployed about $45 million to buy nearly 980,000 shares in the airline last Thursday, according to a Securities and Exchange Commission filing. The purchases raised its total holding to about 71.9 million shares, giving it an 11.2% stake in the company.
