Asset: Delta Air Lines (DAL)
Timeframe: 30-Min Chart
Setup Type: Bearish Breakdown Trade
Trade Plan (Short Position)
Entry Zone: Below $46.68 (Breakdown Confirmation)
Stop-Loss (SL): Above $49.14 (Invalidation Level)
Take Profit Targets:
TP1: $43.71 (First Support Level)
TP2: $40.77 (Extended Bearish Move)
Risk-Reward Ratio Calculation
Risk (SL Distance): $49.14 – $46.68 = $2.46 per unit
Reward to TP1: $46.68 – $43.71 = $2.97 (1:1.21 R/R)
Reward to TP2: $46.68 – $40.77 = $5.91 (1:2.40 R/R)
Favorable Risk-Reward Setup – Targeting a 1:2.40 R/R at TP2.
Technical Analysis & Strategy
Bearish Descending Triangle Breakdown – Price broke below the trendline, indicating further downside potential.
Weak Buying Pressure – Struggling to hold above $46.68, signaling seller dominance.
Volume Confirmation Needed – A strong sell volume spike below $46.68 confirms momentum shift.
Momentum Shift Expected – Breakdown could lead to $43.71, then extend to $40.77.
Key Resistance & Support Levels
$49.14 – Stop-Loss / Resistance Level
🟡 $46.68 – Breakdown Level / Short Entry
$43.71 – First Target / TP1
🟢 $40.77 – Final Target / TP2
Trade Execution & Risk Management
Volume Confirmation – Ensure strong selling pressure before entry.
Trailing Stop Strategy – Move SL to breakeven ($46.68) after hitting TP1 ($43.71).
Partial Profit Booking Strategy:
Take 50% profits at $43.71, let the rest run to $40.77.
Adjust SL to breakeven ($46.68) after TP1 is hit.
️ Fake Breakdown Risk
If price moves back above $46.68, exit early to limit losses.
Wait for a strong bearish candle close below $46.68 before an aggressive entry.
Final Thoughts
Bearish Setup Confirmed – Breakdown signals further downside potential.
Momentum Shift Expected – Watch for volume confirmation.
Favorable Risk-Reward Ratio – 1:2.40 R/R at TP2 makes this a high-quality trade.
Stick to the plan, manage risk, and trade smart!
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