Delta Air Lines (DAL) returned to the Green Favored Zone of the SIA S&P 500 Index Report yesterday. With the exception of a few days in June, DAL has been stuck in the yellow and red zones since April of 2016. Delta climbed 28 spots yesterday and is up 289 spots in the last month.
Since bottoming out in May, Delta Air Lines (DAL) shares have been steadily regaining lost altitude, initially rallying toward $37.50 then establishing support at a higher low near $25.00 before regaining $30.00 again and advancing toward $35.00.
Initial upside resistance appears in the $37.00 to $37.50 area between the 20-day average, previous peak and the bottom of an older gap. A breakthrough there would confirm the start of a new uptrend with next resistance tests after that potentially near $42.50, the top of an old gap, then $50.00 where a measured move and a round number converge. Initial support appears near $32.50 then $30.00.
Recovery momentum in Delta Air Lines (DAL) has been accelerating lately with the shares completing a bullish Double Top then a bullish Spread Double Top and advancing on $34.50 in recent weeks. Initial upside resistance may appear at recent highs and a horizontal count in the $37.60 to $38.50 area, followed by a downtrend line near $41.50 and the $50.00 round number on trend. Initial support appears near $31.50 based on a 3-box reversal.
With a perfect SMAX score of 10, DAL is exhibiting near-term strength across the asset classes.
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