Asset Watch
Thursday, March 9, 2023
So, with relative strength present since its July and October lows, could Delta Air Lines be a solid momentum play in the weeks ahead?
Back in 2020-2021, the 20-week moving average provided continuous support. Delta Air Lines has sunk below its 20-week MA on six occasions since late October but has managed to close above the key level each time. As a result, the bulls have been quick to buy the dip, and until that changes, ‘the trend is your friend.’
The only caveat is the stock is 7.9% above its 20-week MA, so it may be prudent to wait for a pullback. But will the next bout of weakness be a great buying opportunity, or will recession fears change the narrative over the medium term?