Delta Air Lines (DAL) is trading lower after reporting less than anticipated Q2 profit and revenue figures Tuesday morning. The company also issued a cautious outlook. Let's check out the charts and indicators.
In this daily bar chart of DAL, below, we can see that prices have been slowly declining since early June. The level of trading volume has been declining since the early June surge and the On-Balance-Volume (OBV) line has been slowly decreasing.
Prices are trading around the rising 50 day moving average line but remain below the declining 200-day moving average line.
The Moving Average Convergence Divergence (MACD) oscillator has also drifted down and is poised to break below the zero line for an outright sell signal.
In this weekly bar chart of DAL, below, we can see a mixed to bearish picture. Prices are well below the declining 40-week moving average line.
The weekly OBV line made only a one month bounce and is back down in a slump.
The MACD oscillator gave a cover shorts buy signal at the end of May but remains well below the zero line and weeks away from a potential buy signal.
In this daily Point and Figure chart of DAL, below, we can see a possible downside price target of around $19.
Bottom line strategy: It is not clear what the future will be for travel as many people I speak to are waiting for 2021 before booking a vacation. DAL could slip lower to retest its May low. Avoid for now.