Delta Air Lines ( DAL) is expected to report earnings on April 13 before the opening of the stock market. Fundamental analysts seem to be weighing increased bookings versus higher fuel, labor costs and other factors. I prefer to just look at the price charts and technical indicators.
In the daily bar chart of DAL, below, we can see that the shares have moved lower in a wide-swinging path since June. DAL is trading below the declining 50-day moving average line and the declining 200-day moving average line. The 50-day line could get tested in the short-run.
The trading volume has been more active since early December and with the up and down swings it is hard to evaluate. The smoother On-Balance-Volume (OBV) line is easier to figure out as it has been declining the past year and tells me that sellers of DAL have been more aggressive than buyers.
The Moving Average Convergence Divergence (MACD) oscillator has moved above the zero line but may not stay there for long.
In the weekly Japanese candlestick chart of DAL, below, we see a weakish picture. The candles look like they are reversing to the downside. Prices are trading below the declining 40-week moving average line.
The weekly OBV line has been weak since early 2021. The MACD oscillator is bearish.
In this daily Point and Figure chart of DAL, below, we can see a potential downside price target in the $19 area.
In this weekly Point and Figure chart of DAL, below, we can see that the software is projecting the $15 area as a potential downside objective.
Bottom-line strategy: I have no special knowledge of what DAL is going to tell shareholders and analysts on Wednesday when they are anticipated to report their latest earnings. However, I do know the charts look weak and I would avoid the long side of DAL for now.
