Delta Air shares gain the most in two weeks on Tuesday, company to cancel order for Boeing aircraft

According to a statement made on Tuesday, the NYSE-listed transportation company Delta Air Lines Inc came to an agreement with Boeing to cancel an order for 18 787 Dreamliner jets. The order was reported to have been valued at over $4 billion in accordance with current list prices. However, no further details of the agreement were disclosed.

Delta Air shares rose the most since December 15th on Tuesday, while extending gains from the previous trading session. The stock went up 0.94% ($0.47) to $50.36, with the daily high and the daily low being at $50.61 and $49.98 respectively. In the week ended on December 25th the shares of the carrier lost 0.54% of their market value compared to a week ago, which marked a second consecutive period of decline, but yet, the smallest one since the week ended on July 31st. However, the stock has extended its advance to 4.52% so far during the current month, after climbing 15.35% in November. The latter has been the stock’s best performance since November 2014. Back then Delta Air shares appreciated 16.01%.

According to the statement, Delta Air is to keep the delivery of Boeing 737-900ER aircraft during the upcoming three years.

The cancellation of the 787 Dreamliner aircraft order came as a result of recent efforts by leading US airlines to slow growth of flight capacity, as airfares continued to decrease.

According to Delta, carriers from outside the US such as Norwegian Air Shuttle ASA kept adding flights, which have gone way beyond passenger demand.

25 A350 jets by Airbus Group SE, already scheduled for delivery, are to expand Deltas flight capacity during the current decade. In order to make the schedule “more consistent with (the) expected pace of international market improvement”, the carrier intends to delay the delivery of 4 Airbus A350 aircraft by 1-2 years from 2018, as reported earlier.

Daily and Weekly Pivot Levels

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

R1 – $50.42
R2 – $50.48
R3 (Range Resistance – Sell) – $50.55
R4 (Long Breakout) – $50.73
R5 (Breakout Target 1) – $50.95
R6 (Breakout Target 2) – $51.05

S1 – $50.30
S2 – $50.24
S3 (Range Support – Buy) – $50.17
S4 (Short Breakout) – $50.00
S5 (Breakout Target 1) – $49.77
S6 (Breakout Target 2) – $49.67

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 – $50.23
R1 – $50.81
R2 – $51.72
R3 – $52.30
R4 – $52.87

S1 – $49.32
S2 – $48.74
S3 – $47.83
S4 – $46.91