Delta Air shares gain the most in a month on Wednesday, company projects a lesser decline in its passenger unit revenue

January 5, 2017 11:00 am

On December 4th the NYSE-listed transportation company Delta Air Lines Inc announced it projected a lesser drop in its passenger unit revenue during the fourth quarter of 2016 compared to what it had previously expected. The second largest US airline in terms of passenger traffic based the new forecast on strong demand for its services in December.

Delta Air shares recorded their largest daily surge since December 7th on Wednesday, while also marking a second consecutive session of gains. The stock went up 2.47% ($1.22) to $50.70, after climbing as high as $50.92, or a level not seen since December 21st ($51.15). In the week ended on January 1st the shares of the transportation company lost 1.40% of their market value compared to a week ago, which marked a third consecutive period of decline. However, the stock advanced 2.10% in December to log its fourth straight month of gains. For the entire 2016, Delta Air shares retreated 2.96%.

The carrier’s passenger unit revenue, a key indicator comparing sales to flight capacity, is now expected to drop 2.5% to 3.0% in the final quarter of 2016. In comparison, last month Delta Air forecast a 3.0% drop in this key revenue measure, while an older forecast pointed to a 5.0% slump.

Additionally, Delta Air now projects about 1% growth of its flight capacity during the last three months of 2016.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Delta Air stock are presented as follows:

R1 – $50.79
R2 – $50.87
R3 (Range Resistance – Sell) – $50.96
R4 (Long Breakout) – $51.22
R5 (Breakout Target 1) – $51.52
R6 (Breakout Target 2) – $51.65

S1 – $50.61
S2 – $50.53
S3 (Range Support – Buy) – $50.44
S4 (Short Breakout) – $50.18
S5 (Breakout Target 1) – $49.88
S6 (Breakout Target 2) – $49.75

By using the traditional method of calculation, the weekly levels of importance for Delta Air Lines Inc (DAL) are presented as follows:

Central Pivot Point – $49.56
R1 – $50.24
R2 – $51.30
R3 – $51.98
R4 – $52.67

S1 – $48.50
S2 – $47.82
S3 – $46.76
S4 – $45.71

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