Worries over China and a lack of progress over the sequester sent stocks lower in early Monday trading session. The market however, managed to overcome the early weakness and ended near session highs with the S&P 500 finishing in positive territory for the first Monday in 2013 and the Dow close to hitting its record closing high.
Delta Air Lines Inc. (DAL) was a notable sector outperformer in Monday trading session after the company told a J.P. Morgan investor conference it hoped to post a profit for the first quarter, which would represent the carrier’s first March quarter in the black since 2000. Shares soared 5.60% to 15.65 – a new 52-week high. This is definitely a positive sign going forward. In fact, as the chart below indicated, DAL could climb up to test key technical resistance near 19 as it extends Monday bullish breakout. Just so that you know, initially profiled in our February 25, 2013 “Swing Trader Bulletin” DAL had gained about 14% and remained well position.
The graphic below is from our “U.S. Market ETF Trading Map”, which show the near-term technical bias and trading ranges for DAL. As shown, the underlying is in a short-term bullish trend when the price bars are painted in green. The underlying is in a short-term bearish trend when the price bars are painted in red. The yellow bars identify period of neutral or sideways trading pattern. Additionally, the light-blue shading represents the short-term trading range. A move above or below that range is considered overbought (as represents by the red shading) or oversold (as represents by the dark-green shading). Readings above or below the red and green shaded areas are considered extremely overbought or extremely oversold.
Chart 1.1 – Delta Air Lines Inc. (daily)
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