Delta Airlines Inc. DAL shares were trading lower Monday. Here's a technical analysis of the airline stock.
Delta Airlines Daily Chart Analysis
- The stock looked to bounce off support in what technical traders call a falling wedge pattern. The stock has been heading higher toward resistance since then.
- The stock bounced off pattern support and has moved higher inside the pattern. The price will likely be condensed more in the pattern until it gets squeezed above resistance or below support.
- The stock trades below both the 50-day moving average (green), and the 200-day moving average (blue), indicating recent sentiment in the stock has been bearish.
- Each of these moving averages may hold as an area of resistance.
- The Relative Strength Index (RSI) has been pushing higher the past few days and moved above the middle line. The RSI now sits at 51, meaning there are now more buyers in the stock than sellers.
What’s Next For Delta Airlines?
Bullish traders want to see the stock form higher lows within the pattern and move up to pattern resistance. Bulls would then like to see the stock break above pattern resistance and start moving higher, followed by a period of consolidation.
Bearish traders would like to see the stock fall lower and break below the pattern support. If price falls below pattern support and sees some consolidation, then the stock may see a further push down.
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