Delta Air Lines Inc. (DAL) looks like it is flying high this morning ahead of the opening bell on the NYSE. DAL is trading at a new high, so a fresh look at the charts and indicators seems on the check-list before takeoff.
We last looked at DAL in the middle of March, when we wrote: "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." The decline ended around $44 in April. Since April, DAL has had a number of takeoffs and landings, with each landing at a higher low.
In this daily bar chart of DAL, below, we can see that prices are now above the rising 50-day moving average line and the slower-to-react 200-day line. The trading volume shows a pretty active stock, but I do not see a consistent pattern.
The daily On-Balance-Volume (OBV) line shows a pattern of up and down swings. We do not see higher highs, but the OBV line has made higher lows. Strong volume today could push the OBV line to a confirming new high. The daily Moving Average Convergence Divergence (MACD) oscillator is above the zero line, but recently crossed to a take profits sell signal. This indicator could reverse back to the upside, if the price action in coming days is strong.
In this weekly bar chart of DAL, below, we went back five years to show what today's strength means. The whole pattern of price activity going back to late 2014 looks like a large consolidation pattern. Prices are above the rising 40-week moving average line. The weekly OBV line is flat or neutral. The weekly MACD oscillator is in a bullish mode above the zero line.
In this weekly Point and Figure chart of DAL, below, we can see that the trade at $56 was a bullish breakout, and there is a longer-term potential price target of $77.00.
Bottom line: If you are long DAL, you are sitting in first class, but raise your sell stop to a close below $53. If you want to buy a ticket on this flight, look for a shallow dip towards $57 to buy.