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Swing Trade Idea (DAL) – December 19, 2023

Our bearish trade for Tuesday, December 19th is Delta Air Lines, Inc. (DAL). DAL is part of the Industrial Sector, which has performed at 2.18% over the last week as it has reached a point of exhaustion, with DAL underperforming relative to its sector at 1.65% over the same period.

DAL has seen a sharp rally over the last few weeks which added around 33% to the stock price. DAL has traded into an area of resistance at $41 from where it is now pulling back as it is overbought. The next support is at around $38.

As a close, if DAL were to trade above $43 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves below $0.77.