Delta Air Lines Stock Nears Death Cross: Time to Fasten Seatbelt? – Delta Air Lines (NYSE:DAL)

Delta Air Lines Inc. DALa cornerstone of the American aviation industry and the oldest operating airline in the United States, is heading for turbulent skies.

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While the share price was Death Cross – a technical pattern in which a short-term moving average crosses below a long-term moving average – investors are wondering if it’s time to prepare for a bumpy ride.

Recent events have not been particularly favorable for Delta. The stock is up 1.29% year-to-date, but has lost 3.40% over the past year, with a significant decline of 7.16% in the last month.

Adding to the turbulence was Delta’s COO, Michael Spanos is leaving the airline after just one year. His departure follows a major IT outage that grounded thousands of flights and cost the company a whopping $500 million – a loss that is still etched in the minds of investors.

Also read: Delta loses money after tech disaster and pursues legal claims against CrowdStrike and Microsoft

The timing of Spanos’ departure, coinciding with his appointment as CEO of Bloomin’ Brands Inc BLMNhas caused a stir and created additional uncertainty in Delta’s leadership landscape.

While Delta struggles with operational challenges, its stock’s technical indicators point to further turmoil. The approaching death cross typically signals bearish momentum and warns investors of potential downside.

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Delta’s current share price is $40.97, just above the last 8-day and 20-day moving averages (SMAs) of $40.45 and $40.04, respectively. These levels indicate bullish sentiment in the short term.

However, the medium to long-term signals paint a different picture.

Delta’s 50-day SMA is at $43.84, well above the current stock price, which is a bearish signal. Likewise, the 200-day SMA at $43.68 reinforces the bearish outlook.

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With a MACD (Moving Average Convergence Divergence) indicator of minus 0.88 and a RSI (Relative Strength Index) index of neutral 47.76, technicals suggest that Delta is facing downward pressure, although it is currently neither overbought nor oversold.

Moreover, the Bollinger Bands (25) range from $36.92 to $44.52, suggesting that the stock is trading near its lower band – a bearish sign. The stock seems to be close to reaching the upper bullish band, but if other momentum and oscillator indicators fail to support it, it could be a tough road ahead.

Delta shares: Ready for the jump – or a crash landing?

While Delta’s short-term technicals suggest a brief respite, broader indicators are less encouraging.

Investors should keep a close eye on the upcoming Death Cross and be prepared for further volatility. There may still be opportunities for those who can handle turbulence, but it could be a bumpy ride.

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Photo: Courtesy of Delta