Delta got punished for a fuel number that is already wrong.

They crushed earnings on April 8. Beat on revenue. Beat on EPS.

Record Q1. Then the stock got hammered.

The reason was the guidance. They projected a $2 billion fuel headwind in Q2, built around $4.30 a gallon. The market heard that number and sold hard.

Oil was at $88 yesterday and dropping. That $4.30 assumption is looking more like a ceiling than a floor.

Every dollar oil gives back from that level goes straight into Delta’s Q2 numbers. The market woke up to that math this week.

And the chart is screaming.

The trend is intact. Daily and weekly. The 8-day EMA and the 20-day EMA are stacked above the 200-day SMA at $62.33.

After a brutal flush from the December highs all the way down to the $57-$60 area, the price has turned and reclaimed both moving averages. That is a trend change, not a bounce.

The stock spent weeks coiling in that base. Compressing while the oil story worked itself out.

Now it is climbing toward descending resistance in the $73-$75 area, the same level it peaked at before the entire selloff began. That is the next wall.

The daily squeeze is set up during the post-earnings compression. The coil is loaded and has not fired yet.

That is exactly where I want to see a setup. Before the move, not after.

Earnings are done. The next report is in July. No earnings event in the way.

Your Action Plan

This is not a setup I trade personally. It does not move fast enough for my system.

But the TPS is clean. Trend intact, base built, squeeze loaded. The fundamental reason for the next leg is playing out in the oil market right now.

I built my system around faster-moving momentum plays. Took a five-figure account to $2.7 million in four years.

The setups I go after move in 24 hours or less.

If that is what you are looking for, come check out Daily Profits Live.