Wednesday 24 December 2014

DAL, UAL - back on the climb

With the broader market continuing to break new historic highs, along with weak oil prices, the airlines remain broadly climbing from the Oct' low. Delta (DAL) and United (UAL), settled higher by a significant 1.9% and 3.9% respectively. Outlook is bullish.


DAL, daily


UAL, daily


Summary

Despite a short trading day, the airlines made strong gains, with both DAL and UAL close to breaking new historic highs.

If Oil prices bounce into the spring - as I believe (WTIC Oil $70/75), the airlines will lag the broader market, but should still be able to broadly push upward.
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Of the two stocks, DAL is my preferred, not least since the price action is generally more consistent/stable.

*no position, but I will strongly consider being long DAL after Oil prices have bounced into the $70s...no later than May/June 2015.