Leading airline stock, Delta Air Lines Inc (DAL), is coming under some selling pressure after reporting earnings this morning. Delta Air Lines Inc (DAL) stock is trading lower by 4.40% to $41.62 a share. The company warned that high fuel prices are going to pressure its ability to remain profitable in the 4th quarter. Traders should note that the popular airline stock is now trading below its important 200-day moving average. This puts the stock in a weak technical position on the charts and usually signals further weakness ahead.
The next major chart support level for Delta Air Lines Inc (DAL) stock will be around the $37.00 area. This support level is where the stock has been defended in February 2021. It is also a prior breakout level from November 2020 which tells me that the institutional crowd will likely defend this stock again at this key support area. I will be looking to trade this stock on the long side when Delta Air Lines Inc (DAL) stock tests this important support level.
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