Keep your Eyes on the Sky with $DAL, $JBLU, and $UAL (January 13, 2021)


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This is Scott with your Chart of the Day. I actually have 3 charts for you to look at today but they are all in the same sector. I want you to keep your eyes on the sky at least when it comes to airline stocks. Some airline stocks are setting up nicely here.

We will start things off here with Delta ( NYSE: DAL ). Delta ( NYSE: DAL ) has been drifting down to the 50-day moving average since the end of November. And in November airlines kind of topped out a little bit and then it has just been a slow gentle drift down to the 50-day.We have had 2 chances here to break below some key moving averages. We broke below, close to the 50-day, they bought it back up, retested it and they bought it back up again.

The last couple of days, if we bring in the volume here you can see a decent pickup in volume here on Delta Airlines ( NYSE: DAL ). I like this really nice price action the last couple of days; I am going to set an alert on Delta ( NYSE: DAL ) just under $41.00. What I want to see from Delta ( NYSE: DAL ) is a move above 41.00 coming off on volume.

The next airline to take a look at is JetBlue ( NASDAQ: JBLU ); the same kind of setup. In November the airlines really started to stall out a little bit and the buyers kind of dried up. It drifted back to the moving average, the 50-day moving average, tested it, it passed. Tested it again, it broke down but it passed that test again as buyers stepped in to bring it back up above support; the same kind of setup, nice tight price action the last couple of days.

I want to see a move above 15.09 here on JetBlue ( NASDAQ: JBLU ). You can see how that level was resistance, couldn’t make it and we’re just under there now. So I want to see a move above 15.09 coming on higher than average volume.

And finally, here’s United Airlines ( NASDAQ: UAL ). The end of November, a drift down to the 50-day. A nice high price action the last couple of days and I want to see a move above that high, maybe just around 44.80. Now, the thing that kind of really kind of attracts me to these stocks is the fact that they kind of look like some of the automakers.

If you look at General Motors ( NYSE: GM ) for example. General Motors ( NYSE: GM ) topped out near the end of November. It drifted down to the 50-day, tested it, and boom, it took off to the upside. Ford ( NYSE: F ), the same thing, end of November, drifting down.

That’s the kind of setup that I want to see play out here on some of the airlines. So keep an eye on Delta ( NYSE: DAL ), JetBlue ( NASDAQ: JBLU ), United ( NASDAQ: UAL ), and some of the others. Build your watch list, set some alerts and we will see how these play out.

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