DAL


This is the past 2 yrs using a weekly period. We are in a downtrend, however, it looks like we're in a support area.

There is a lot of bearish volume.

The compression pattern that is occuring is one of a descending wedge. See it?

Volume: Bearish volume is overall decreasing. Not a lot of bullish volume. Compression.

If you're looking for a longer play here, unless your daytrading, I don't see a good play here. The more you compress into the wedge, the weaker usually the breakout. It's in a monetary trading range that is so small.

Support is in the $4-5 range. That's big for a stock in this price range. Yes, you could play this area if you really want. Lots of other better stocks to trade.


This daily view shows the bearish range to play is $5.25 to $3.50. I suppose that's enough. Cheap stocks like this do not excite me. I see greater commissions costs as you need to buy more to get money in your pocket. Okay, that's my bias.

For a bullish play, I would do it above the descending trend line I drew that is between the 50 and 200 EMA. See that?
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