TopOptionAlert
$DAL NOV20 78C · still actionable
Zone: $74.84 to $75.90
Invalidation: close under $75.06
Objectives: $79, then $85.47
The math: up 4.8% to the first objective and 13.4% to the second, against 0.4% risk on the invalidation, better than 30 to 1 to the second
Dear friend, think of this swing setup like a plane that hit a rough patch of air and came down fast, yet is still flying level just above the ground everyone can see. Delta closed Friday at $75.37, down 3.5 percent that day and down 8.3 percent in five sessions, yet buyers held the $75.06 low and kept price right at the $75 round level. What that means is simple. The floor is close underneath us, and overhead there is room back toward $79 first and $85.47 next, while a close under $75.06 would tell you that floor gave way and you step aside, plain and simple.
P.S. Watch $79 on Monday. It was the high on Friday, and a close over it would show buyers pushing, not just defending the low.
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