Delta Air Lines (DAL) will hold its 2023 Investor Day on Tuesday. Let's review the charts and our seat selections.
In the daily bar chart of DAL, below, I can see that the shares have soared since March. DAL trades above the rising 50-day moving average line and above the rising 200-day moving average line.
The On-Balance-Volume (OBV) line shows us a rising trend the past year and helps to confirm the price gains we have seen. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but it has narrowed in recent days telling me that the strength of the uptrend is weakening.
In the weekly Japanese candlestick chart of DAL, below, I can see two-thirds of a top reversal in the past two weeks. Price made a strong rally followed by a spinning top pattern. A bearish candle (red) this week would confirm the top reversal pattern. The slope of the 40-week moving average line is positive.
The weekly OBV line shows a strong rise. The MACD oscillator is slightly above the zero line.
In this daily Point and Figure chart of DAL, below, I can see that the shares have reached a price target in the $42 area.
In this weekly Point and Figure chart of DAL, below, I can see that the stock reached and exceeded a $42 price target.
Bottom-line strategy: The shares have had a strong rally since March and reached an upside technical objective. My gut tells me that traders should book profits on longs.
