Delta Air Lines, Inc. (NYSE:DAL) and United Continental Holdings Inc (NYSE:UAL) have collapsed over the last two days. Both stocks are down over 10% from their recent highs. Delta Air Lines and United Continental Holdings Inc have more downside to go before they see a quick, sharp bounce. If played correctly, this bounce can pay you big money.
The Delta Air Lines buy level would be the daily 50 moving average at $37.41 if hit tomorrow. If not, the time factored buy level is $34.95. Time is important here as the level of $37.41 is only valid on a three bar surge which would be tomorrow.
United Continental Holdings Inc has support at $39.45. There is no time factor as long as this level is reached within the next week. Look for a multi-day bounce where.
In the last week, I gave out a major short signal on all the airlines. Those that played the puts on Delta Air Lines as recommended took a 100% gain. Get these trades and more buy taking the seven day free trial to the Research Center.
Gareth Soloway
Chief Market Strategist
