If looked from the perspective of Fibonacci... chances are DAL prices during COVID 19 align with a 78% retrace line. Those also seem to match resistance around the initial trading values of this stock.
There is a good chance that during June and follow on months, this price will continue to grow and test the $50 price. At least from my perspective. Whether if it only tests the $50 to later come back down or just go back to previous price ranges, there may be a profit benefit here. The next months behavior really depends on what is going to happen around the Pandemic itself and associated travel restrictions. As well as how humans may fear traveling in the short term. It seems that a buy at current price range may reward with short term growth. If it happens, it can potentially be protected with a sell limit in case prices fall again.
Another strategy may be to buy and just sell with the price hits the $50 range. It'll all depend on each individual's preference: Do you want the shares for the long term (and take advantage of current bargain prices)?; Or do you want to profit with volatility?
Great post. What do you think will happen in the next week? I put almost all my money in at $37 (300k) and I’m super anxious now. Debating about cashing out on Monday.
LuisRodH
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@k8eeeeee hold
Aizakku
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@k8eeeeee, I'm not qualified to give advise. But a general rule is not to put all eggs in a single basket. Airlines' stocks are way too volatile to put all your money on those. Specially if you made your decision at $37 rather than at the bottom $20. At current price point, on the short term, you are reacting to price movement that already started which can be seen as trying to catch a falling knife. Just be careful. In the short term (next week)... we are speaking of the daily and the 4 hour movements. Anything can happen here. It all depends on whether airlines continue to open their routes and not push out opening international flights. With the COVID numbers right now, I personally feel it may take them a few weeks to really open some routes. Also, we are reaching end of quarter. That means, earnings reporting. Which for Q2 will not be good (for obvious reasons). All of those things would move prices.
AlmadeCubano
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Excellent analysis. If I can recap: this stock will probably go up or down, and if you trade it luckily, you may make money.
Aizakku
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@AlmadeCubano, you're right. Either way, there is good opportunity here.