The stock price of Delta Air Lines (DAL) looks like it could stay grounded a while longer instead of breaking out on the upside from a multi-month consolidation pattern.
The price of DAL has been buffeted up and down in a wide range the past 12 months (see chart above), and each time it gets close to a breakout to the upside, it gets grounded. Like other stocks, we have looked at in recent weeks, DAL sold off in January to a February low and has recovered. Prices are back above the 50-day and 200-day moving averages. The On-Balance-Volume (OBV) line has improved from its recent low but it has become stalled and we have a divergence between the price action making higher highs and the momentum study making a much lower high for a bearish divergence.
In this longer-term view of DAL, above, we can see prices above the rising 40-week moving average line. The OBV line is steady on this time frame and might eventually break out to new highs before prices do. In the bottom panel, we find no featured divergences to push our opinion one way or the other. DAL won't stay in a holding pattern forever and an upside breakout will probably happen at some point this year.