Investors and travelers are wondering what is the fate of the airlines, the hotels and the resorts. One caller during Tuesday night's Lightning Round of Mad Money asked about Delta Air Lines Inc. (DAL) : "I'm not a fan of the airlines. Right now, they need people on their planes and they don't have them," reasoned host Jim Cramer.
Let's skip the TSA line and go straight to the charts.
In the daily bar chart of DAL, below, we can see that prices were stuck in a long sideways trading range pattern between $50 and $65. In a broad bull market it would have been expected that DAL would eventually break out on the upside. Unfortunately the breakout was to the downside starting with a downside price gap (void) in late February. A bearish death cross of the 50-day moving average line and the 200-day moving average line can be seen in early March.
The daily trading volume has soared dramatically in the past five weeks as some investors liquidated longs. The On-Balance-Volume (OBV) line peaked and turned lower from the middle of January and recently made a sharp bounce to the upside.
The 12-day price momentum indicator or study in the bottom panel still shows lower lows being made on DAL. A bullish divergence from the momentum study would be preferred over this pattern.