Technical analysis update: DAL (13th July 2021)

Delta Airlines experiences correction for about four months now. ADX continues to climb above 27 points which suggests that trend might be near its peak. In addition to that RSI fails to cross below 30 points. Such phenomenon in RSI tends to correlate with strong bullish trend of higher degree and weak bearish trend of lower degree. MACD and Stochastics remain bearish. Despite that we would like to set our short term price target for DAL to 45 USD and our medium term price target to 47.50 USD.

Correlation with LUV:

Disclaimer: This analysis is not intended to encourage buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.

Comment:

Similar setup in LUV:

Trade closed: stop reached

Comment:

Even though stop-loss has been reached we think there is high chance of reversal in price. This move lower that occured in DAL is not confirmed by AAL and LUV. We think this drop will be shortlived and price will reverse.

Trade active:

Trade may be reentered above resistance as same setup remains in place.