As far as transportation goes, I’m a big fan of flying. My next preferred method of travel is driving. It’s much less expensive than flying! The biggest drawback is that it takes so long, but if you have a good play list set up it’s not too bad. I drive a lot and don’t mind it. If I’m making a pro/con list in regards to flying, speed would be my number one pro. My number one con to flying is price. My second con (and it’s a high one, mind you) is leg room. I’m 6’4” and planes aren’t usually friendly to my type. I will give a shout out to Southwest. I do LUV them. HA! See what I did there? LUV flights usually have pretty solid, [eh decent] leg room.
DELTA
This write up is about Delta Air Lines Inc. (DAL) though. It’s really making headlines today with a pretty decent gap. I will be the first to say this gap, this candle, and this prior distribution phase does look a lot like Facebook (FB) back in October 2012. As in, very similar in my opinion. Therefore, we could and likely will see one of two things quite soon. I’m expecting DAL to trade soft and sideways for another day or two.
KEY LEVELS
But if DAL takes out and closes below the low of today, price could very well retrace all the way back to 30. However, if DAL does trade sideways for two to three days and we have a strong close above the high of today, 44.93 could be an ultimate target. Granted, DAL could take its sweet time to reach that target.
The risk/reward for this one makes total sense. Stop could go as low as 34.13 or as high as 35.49, depending on how and if the gap doesn’t fill. See, this gap will create some strength as a support. I don’t entirely expect it to fill and pull back, although I said the same thing on FB back in October 2011.
PLAN YOUR TRADE
Make sure you’re prepared for either possibility and plan your trade. The best traders often know days and sometimes even weeks in advance what they want to do on a particular trade. This trade could really fly, so be ready. (Ok, that’s my last bad pun for this write-up) Enjoy your weekend everyone!
