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After the closing Bell
Today the Market showed little directional movement overall as we see major spikes up and down as the market is being pushed up with new highs with no clear sign of where the next resistance will be.
We initially started off this month with fear of conflict becoming hostile between the U.S. and Iran. With the market being driven by fear of recession many were bracing there to be major repercussion from the market. Regardless we did not see a major push back from direction in the market.
The market continues to push up higher with little signs of slowing down. There continues to be more buying in during the dips in the market and the selling positions are very little to none.
The day in the market has closed today slight lower by just a few points. A weaker trading day like today would not signal a reversal in the market but just a natural ebb to the flow of the market. Until there is major switch in direction from the market optimistic conversations continue across the board in the market.
Delta has been leading the way in terms of a global airline. They have shown last year the strength in their partnerships and service. With their strong involvement with developing and advancing their technology in the cabin and in the cockpit they have shown to be one of the leaders in the industry.
Delta Earnings Release Recap
Today they announced their earnings for 2019 4th quarter which provided investors with incredible returns on their investment.
Today we had Delta Air Lines release their 4th quarter earnings report before the market opened. For the 4th time in 2019, Delta has announced a positive quarter of beating their forecast for EPS. Delta announced beating their forecast of 11.34 B by hitting the 11.44B actual revenue and Earning per share of 1.7 beating their estimate of 1.4.
Trading volume for the day hit numbers just over 12m surpassing the 20 day average of 5m significantly. The Zack’s score for Delta (NYSE: DAL) is still at a hold value of 3. Overall when we continue to look at the stock in the three main factors of News, Fundamentals, and technicals the details are lining up towards a strong year ahead.
Delta has reduced some risk with Boeing 737 MAX by not having placed a large amount of orders for the aircraft. With their fleet continuing to expand with new Airbus and Boeing wide body aircraft, Delta has shown their strength by having a reliable fleet around the world.
To this day they have been able to reduce delays across the network incredibly and in the event that there are any delays they have always gone above and beyond to ensure that the guest is taken care of.
Maintaining the Course
When we take a look at the technical portion of Delta there is positive potential for the stock. Over the last two years we can see how the stock has been trending sideways between two major daily support and resistance levels.
Over the last year we have seen there to be a development of direction in the stock. As the price continues to trend sideways overtime testing highs and lows we can see the slight shift upwards.
The lows of the price are trending higher over time and the highs are moving higher as well. we are currently in the middle of the sideways range although we have broken above the previous daily resistance level.
Looking for a slight retracement would provide for an opportune moment to enter in on positions if you are currently not in the stock. The next major resistance level sits right below the $65 price level.
To start of the year we are going to highlight delta for being one a fan favorite in the industry and to investors. In addition having had an incredible year once can only continue to strive for another strong year. With a strong leadership in place and stable financials to support growth our personal bias for Delta remains optimistic.
Restructure your Trading Plan.
Investing will always contain risks no matter what you do to prepare yourself. What distinguishes those who are able to be successful long term and those who loose in the market is their ability to control and manage risk.
Buying and holding long term stocks can provide potential gains and potential risks. The possibility of purchasing a stock and that stock being at the same exact price one year from today is entirely possible.
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As a disclaimer all trade ideas are for education purposes and not meant to be used as financial advise. All investing involve risks, including loss of principal. Past performances do not guarantee future results or success. Stock and Forex markets are volatile and can decline significantly in response to adverse regulatory, market, economic development. Asset allocation and diversification do not eliminate risk. All Content is used for illustrative purposes and for educational use only.