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Swing Trade Idea (DAL) – January 11, 2022

Our bearish trade for Tuesday, January 11th is Delta Air Lines, Inc. (DAL). DAL is part of the Industrial sector that has performed at 0.35% growth over the last month, with DAL’s growth at -5.93% for the last quarter.

DAL recently bounced higher towards a key resistance level of $41.70 and rejected this level on the retest which provides a good risk/reward bearish entry. The 6M trend is neutral and the 1M trend is expected to follow soon. 

As a close, if DAL were to trade above $43 for multiple days, this would invalidate our analysis and we are going to focus on cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves above $2.82.