Delta Air Lines May Be Losing Altitude

 | Mar 14, 2017 | 2:14 PM EDT
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We last talked about Delta Air Lines (DAL) at the end of January. We noted that the price of DAL was pulling back and opined that it might become a buying opportunity. Let's check our Group Number and the latest charts and indicators to see if DAL is still on course, or if the boarding has been delayed.

In this updated daily bar chart of DAL, below, we can see how it has been unable to break above the $52 level after repeated attempts in December, January and February. The slope of the 50-day moving average line has turned down, while the 200-day average line is still bullish.

The On-Balance-Volume (OBV) line has rolled over and weakened in about the past six weeks. The Moving Average Convergence Divergence (MACD) oscillator has turned down below the zero line for an outright sell signal.

In this three-year weekly chart of DAL, above, we can see that the $52 level has been a problem for a much longer period of time. DAL is still above the rising 40-week moving average line. The weekly OBV line has edged lower in the past three months, and the MACD oscillator signaled a liquidate-longs sell signal on this timeframe.

Bottom line strategy: DAL made a new low for the move down today. It could reverse back to the upside, but for now it looks like the flight plan is headed lower, perhaps as low as $42 in the weeks ahead. Maybe you should cancel your buy orders and look to re-book at a lower level.

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