Overall, from the beginning of this year, the Delta Airlines stock (NYSE: DAL) continues to pick up altitude, trading above its medium-term upside support line drawn from the low of January 3rd. But from a short-term perspective, from the end of July, we see the stock correcting back down and it seems that the price may continue drifting towards the above-mentioned upside line for a quick test. As long as that line remains intact, we will stay somewhat positive over the near-term outlook.
As mentioned above, if the price slides a bit further down and drops below the 57.00 support zone, which is the low of August 5th, this may lead the stock to a test of the previously-discussed upside line. If that line continues to hold DAL from moving lower, a rebound might bring the price back above the 57.00 area, which could attract more buyers back into the game. We will then aim for the 58.05 obstacle, a break of which could send the stock to the 60.45 level, marked by the high of August 8th.
Taking a quick glance at our oscillators, the RSI and the MACD, we see that both are sending us slightly mixed signals. The RSI moved below 50 on August 1st and is currently sat there, while pointing slightly to the upside. The MACD is below zero now and sits below its trigger line, points a bit lower. In a way, these readings might support the idea discussed above, supporting a bit of weakness, before another possible rise.
Alternatively, if the aforementioned upside line breaks and the price falls below the 54.35 hurdle, marked near the low of June 6th, this may force existing investors to liquidate on some of their positions in the stock. DAL may then travel further south, targeting the 52.85 obstacle, a break of which could open the door to a possible move to the 51.30 zone. That zone is the lowest point of May.
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