Delta Air Lines weekly uptrend opportunity based On 1.00 Lot Calculation:
- Delta Air Lines is one of the world's largest airlines by traffic. Though it is mainly a regional carrier, with its worldwide alliance partners, the company serves about 300 destinations in about 50 countries. The company operates a mainline fleet of 1,000-plus aircraft, as well as maintenance, repair and cargo operations. The airline serves more than 200 million customers each year and offers more than 15,000 daily flights.
- Airlines in general are seeing demand picking up, particularly for leisure travel. Delta had strong volumes over the Memorial Day period with the domestic load factor exceeding 80% compared to 50% in April. US domestic leisure travel is expected to be more than 100% recovered in July.
- Delta’s booking volumes are also more than 100% recovered versus 2019 levels and the company anticipates travel demand to continue to pick up going forward.
- The pickup in demand allowed Delta to revise its revenue guidance for the second quarter of 2021. Revenues are now expected to range between $6-6.2 billion, which reflects a 50-52% drop from 2019 levels. The company had previously anticipated a decline of 50-55%. The next earning report is estimated to be out on July 14.
- Delta has been working to reduce its costs through various efforts including fleet simplification. The company is replacing its older aircrafts with ones that are over 25% more efficient. Delta also plans to hire more than 1,000 pilots by next summer due to the intense increase in flights demand.
- U.S. airlines have significantly outperformed the S&P 500 in 2021. Delta Air Lines stock price is currently moving around $44.5 which is around 42% below the record high reached in July 2019 ($63.44).
- Morgan Stanley price target is at $70, Wall Street Journal analysts as well expect the price to reach $70.
Delta Air Lines, June 22, 2021
Current Price: 45.30
|
Delta Air Lines |
Weekly |
|
Trend direction |
|
|
50.80 |
|
|
48.80 |
|
|
47.00 |
|
|
43.60 |
|
|
42.00 |
|
|
40.00 |
Example of calculation base on weekly trend direction for 1.00 Lot*
|
Delta Air Lines |
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|
Pivot Points |
||||||
|
Profit or loss in $ |
5,500.00 |
3,500.00 |
1,700.00 |
-1,700.00 |
-3,300.00 |
-5,300.00 |
|
Profit or loss in €** |
4,622.78 |
2,941.77 |
1,428.86 |
-1,428.86 |
-2,773.67 |
-4,454.68 |
|
Profit or loss in £** |
3,957.12 |
2,518.17 |
1,223.11 |
-1,223.11 |
-2,374.27 |
-3,813.22 |
|
Profit or loss in C$** |
6,809.06 |
4,333.04 |
2,104.62 |
-2,104.62 |
-4,085.43 |
-6,561.45 |
* 1.00 lot is equivalent of 1000 units
** Calculations for exchange rate used as of 08:30 (GMT+1) 22/06/2021
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more detail