Technical Insights for DELTA AIR LINES INC (NYSE:DAL): Is a Breakout Imminent?

DELTA AIR LINES INC (NYSE:DAL) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:DAL.

What is the technical picture of NYSE:DAL telling us.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, DAL scores 8 out of 10 in our technical rating. Although DAL is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• DAL is part of the Passenger Airlines industry. There are 24 other stocks in this industry. DAL outperforms 82% of them.
• In the last month DAL has a been trading in the 39.36 - 43.27 range, which is quite wide. It is currently trading near the high of this range.
• Looking at the yearly performance, DAL did better than 71% of all other stocks. However, this overall performance is mostly based on the strong move around 10 months ago.
• DAL is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so DAL is lagging the market.

For an up to date full technical analysis you can check the technical report of DAL

Why is NYSE:DAL a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:DAL scores a 8 out of 10:

DAL has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 42.67, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NYSE:DAL be traded?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.