Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Tesla shares spike despite earnings miss

News

Gold loses some shine after hitting record highs

News

Avoid the tech wreck with PayPal?

News

Week Ahead Preview: 22nd of April

News

P&G shares rise despite Q3 sales miss

News

Gold continues to shine amid geopolitical worries

Trends & Analysis
News

Tesla shares spike despite earnings miss

News

Gold loses some shine after hitting record highs

News

Avoid the tech wreck with PayPal?

News

Week Ahead Preview: 22nd of April

News

P&G shares rise despite Q3 sales miss

News

Gold continues to shine amid geopolitical worries

Asset Watch

Is Delta Air Lines a first-class ticket?

 

Thursday, March 9, 2023

With Fed Chairman Jerome Powell pouring cold water on the recent rally, the S&P 500 confronted a sea of red on Mar. 7. He said:
“The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated. If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.”
In contrast, Delta Air Lines was a noticeable outperformer, and Evercore ISI upgraded the stock on Mar. 7. The team wrote:
“Demand tone remains upbeat (consistent with our early Feb conference), and we continue to expect positive updates next week.”
Delta Airlines Stock Chart Trading View

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?


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.