Delta Stock Tests Key Chart Level After Earnings

DAL shares have been supported by their 24-month moving average

by Josh Selway

Published on Jul 12, 2018 at 10:25 AM

Delta Air Lines, Inc. (NYSE:DAL) is seeing heavy trading today, following the company's second-quarter earnings release. Delta posted better-than-expected earnings for the quarter, and increased its dividend by 15%. On the other hand, the company had to lower its full-year profit outlook because of rising fuel prices. DAL shares are reacting to the latter, though, last seen down 0.3% at $49.67.

Most airline stocks have struggled to break out in 2018, and DAL stock has been no different. On a long-term basis, the shares may appear more attractive. Despite being down 12% year-to-date, the equity is holding support from the 24-month moving average, which lands in the $48-$49 range, and has served as a floor for the shares since late 2016. 

dal stock today

In the meantime, Delta is facing rising short interest levels. The number of shares held by these bears jumped almost 45% in the last two reporting periods to 21 million -- the highest total in almost two years. This accounts for 3.2% of DAL's float, equaling 3.4 times its average daily trading volume.

But analysts are very bullish on the airline stock. Only one of the 13 in coverage has anything less than a "buy" rating in place, and the average 12-month price target sits at $69.53 -- deep into record-high territory.

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