The Transportation sector dived during Covid Pandemic. Since the low on 03.2020, the recovery has been very anemic compared to the rest of the Indices and Stocks around the World. Delta has been one of the more substantial companies within the airline industry and will soon provide another chance to buy the trend. The Grand Super Cycle shows a lovely impulse, as shown in the following chart
Delta Monthly Elliott Wave Chart
The Idea is a five-wave impulse and a three-wave pullback in the form of a FLAT, which ended in 2020. Since then, the stock has rallied. We believe the advance was in five waves and now should be correcting the cycle from 03.2020 lows.
The Elliott Wave Theory, as explained in the following article states that after five waves advance, there is always a three waves pullback before the continuation of the previous cycle. The Five waves advance looks like the following chart:
5 Waves Impulse Followed With 3 Waves Pullback
At this moment, Delta should be at the beginning of a new process and as far as it stays above 03.2020. Otherwise, a break lower should see the 100% extension since the peak at 07.01.2019 but will be a buying opportunity within the alternate view.
The Elliott Wave Theory is a repetition of patterns, which comes from the microsecond cycles to the Grand Supercycle. The Theory helps many trades to stay on the right side. At EWF, we have added new tools to improve the Theory. The five waves advance and three waves pullback remain the main pattern of the Theory. As of right now, we will concentrate on the cycle since the low at 03.2020 which unfolded as an impulse. The stock is doing ABC correction since the peak at 03.01.2021. The following chart is the Daily view
Delta Airlines (DAL) Daily Elliott Wave Chart
The daily chart above shows the five waves’ advance and the corrective pullback. The chart also shows target to enter the market at $18.5 – $23.78.
In conclusion, Delta still can drop more, but nobody can deny the two impulses from all-time low and 03.2020. The area of $23.92-$18.55 might offer a good next opportunity to buy the symbol.