X Force Global Analysis:
In this analysis, we take a purely technical approach to Delta Airlines (DAL), exploring signs of the stock being oversold, as well as potentially bullish reversal signals demonstrated on the monthly and daily charts.
Monthly Chart
- On the monthly chart, we have counted clear Elliott Waves
- Since 2015, Delta Airlines has been...
I dont know where this is going yet but I think it will be interesting to watch how Delta moves around the $24 area. Might be some good weekly options bets lining up here for anyone trading this stock.
Delta has been undervalued since they haven't been able to perform as per usual. It may be a while before they continue business as usual. They will be able to bounce back as one of the Domestic Airlines. I am more interested in Domestic since other countries may want to keep a hold on the spread of the Virus by preventing international flights.
Overall this is...
RSI over 72 (bearish)
MACD: Repeating pattern from April 29
SMI Rolling over at 1 month highs
Would not be surprised if it dropped back into the lower gap or bounce off of it before testing upper gap.
I don see a lot of reward for airlines at this level. Will most likely wait for entry in the 30's.
The breakout of the top trendline and the stochastic might suggest a buy signal (Check France -KML Airlines , Ryanair , - all European company that have opened high, as well as LSE:IAG .
Perhaps, Delta will do the same.
The right shoulder on the reverse H&S may have bottomed. It's important to note that the neckline is tilted on the upside, so I'm giving the bullish case extra weight. There's the 200 in the way and a trend line since the initial recovery, but with states easing, I think we can see it bump to $26 in the short term. Like I said, however, lots of things in the way...
Airlines have been dumbstruck by this health crisis and many have lost all the stock gains since the financial crisis. That being said... we are still going to use airplanes right? Maybe they'll need to update health and safety procedures and spend a little more money on cleaning the planes, but we don't really have another feasible option for long distance...
