Delta Air Lines Stock Plunges 4.35% As Bearish Signals Intensify Below Key Resistance

Candlestick Theory
Delta Air Lines (DAL) exhibits bearish candlestick patterns in the most recent sessions. The June 16th surge (5.14% gain, closing near the high at $49.46) formed a bullish engulfing pattern but was immediately invalidated by three consecutive bearish candles, culminating in a 4.35% decline to $47.31 on June 17th. This price action confirms $49.60 as a strong resistance level. Key support lies at $47.04 (June 13th low), with a breach potentially targeting the March swing low near $42.30. Resistance is firmly established at $48.94–$49.60, coinciding with the 50-day moving average.
Moving Average Theory
The stock trades below all major moving averages, signaling persistent bearish momentum. The 50-day MA (approximated at $49.80) caps recent rallies, while the 100-day MA (~$48.20) and 200-day MA (~$50.50) slope downward. A sustained "death cross" materialized in late May when the 50-day crossed below the 200-day MA, reinforcing long-term bearish sentiment. Short-term rebounds consistently fail near the 50-day MA, suggesting it acts as dynamic resistance.
MACD & KDJ Indicators
MACD remains below its signal line in negative territory, though the histogram shows marginally reduced bearish momentum. KDJ reflects oversold conditions (K-value: ~25, D-value: ~30) but lacks decisive bullish crossover. Divergence emerges as price hit a lower low on June 17th while KDJ’s trough was higher than its June 13th low, hinting at potential exhaustion in selling pressure. However, MACD’s sustained negative alignment suggests downward momentum may persist.
Bollinger Bands
Price currently hugs the lower Bollinger Band ($47.10 ± 2%), indicating extreme short-term bearishness. Band width has contracted significantly after the late-May volatility spike, suggesting an impending volatility expansion. A close below $47.00 may trigger accelerated selling, while a rebound above $48.50 could test the middle band ($49.00).
Volume-Price Relationship
Recent declines (June 11th, -4.86%; June 17th, -4.35%) occurred on elevated volume (10.2M and 8.3M shares respectively), validating bearish conviction. Conversely, the June 16th rally recorded the year’s highest volume (10.2M shares), indicating strong but ultimately overwhelmed buying interest. This volume asymmetry supports further downside risk.
Relative Strength Index (RSI)
Daily RSI (35.5) resides in neutral territory but trends downward after rejecting the 55 overbought threshold in late May. While not yet oversold (<30), its failure to breach 50 during June rallies signals weak momentum. Weekly RSI (42) aligns with a bearish intermediate trend but shows minor divergence relative to price lows.
Fibonacci Retracement
Drawing from the April 8th trough ($35.88) to the February 24th peak ($69.98), key Fibonacci levels define critical barriers:
- 38.2% ($47.80): Acting as resistance; price rejected this level on June 12th and 16th.
- 23.6% ($42.30): Major support if $47.04 fails.
- 61.8% ($53.50): Reinforced as resistance by May 13th and June 10th rejections.
Current trading below $47.80 suggests bearish continuation toward $42.30.
Confluence & Divergence
Confluence of resistance at $47.80–$48.94 (Fibonacci 38.2%, 50-day MA, June 12th/16th highs) presents a formidable barrier. A close above $49.60 is needed to invalidate the bearish structure. Divergence between KDJ’s higher low (vs. price’s lower low) and RSI’s neutral reading (vs. sharp price drop) suggests weakening downside momentum, though volume and MA alignment favor bears. Probabilistically, DAL likely tests $47.04 support before any sustained reversal attempt. Failure here may accelerate declines toward $42.30.