Delta Air Lines Jumps 4.32% to $50.95 as Technicals Signal Bullish Continuation

Candlestick Theory
Delta Air Lines (DAL) surged 4.32% to $50.95 in its latest session, forming a decisive bullish candle that closed near the day’s high ($51.05), indicating strong buying momentum. This move breached the $50 psychological resistance, previously tested unsuccessfully on June 4–5. A bullish engulfing pattern emerged on May 27 (following a 3.09% gain on elevated volume), foreshadowing the current rebound. Key support now rests at $48.50–$48.80 (consolidation lows from June 2–5), while resistance is evident at $51.05–$51.30 (June 6 high and Fibonacci 38.2% level). A close above $51.30 would signal bullish continuation.
Moving Average Theory
The 50-day moving average ($48.30) recently acted as dynamic support during the June pullback, highlighting its relevance as a trend proxy. The 100-day MA ($47.10) and 200-day MA ($45.80) slope upward, confirming a long-term bullish structure. Critically, the 50-day MA remains above both longer-term averages, sustaining a "golden cross" pattern since Q1 2025. This alignment suggests robust underlying momentum, though the price must hold above $50 to reinforce short-term bullishness.
MACD & KDJ Indicators
MACD (12,26,9) exhibits a bullish crossover, with the histogram turning positive on June 6 as the signal line crossed upward. This aligns with the price breakout. KDJ (9,3,3) shows the %K line (78) crossing above %D (71), exiting oversold territory and approaching overbought conditions. While KDJ’s upward trajectory supports near-term strength, its proximity to 80 warrants caution against overextension. No divergence exists relative to price action.
Bollinger Bands
Bollinger Bands (20-day) contracted sharply in late May–early June, signaling reduced volatility before the June 6 breakout. The price now presses against the upper band ($51.20), suggesting upside momentum. Band expansion during the breakout validates the move’s strength. A sustained close above the upper band could indicate overbought conditions, but the primary signal remains bullish as volatility expands with price momentum.
Volume-Price Relationship
Volume surged to 11.3 million shares during the May 27 bullish engulfing candle, confirming institutional participation. The June 6 breakout occurred on 7.44 million shares—above the 20-day average but below the May peak. This suggests moderate conviction; follow-through volume above 8 million shares would strengthen the breakout thesis. Declining volume during the June 1–5 consolidation supported the bullish reversal setup.
Relative Strength Index (RSI)
The 14-day RSI (63) has climbed from oversold territory (sub-40 in late May) and now approaches neutral. Current levels show no divergence versus price and leave room for further upside before overbought (>70) conditions emerge. The RSI’s higher low in late May versus April’s trough signaled strengthening momentum, aligning with the price rebound.
Fibonacci Retracement
Applying Fibonacci to the April low ($42.17) and the January peak ($69.98) reveals critical levels. The 38.2% retracement ($51.30) aligns with the June 6 high, creating immediate resistance. The 50% level ($56.08) marks the next key hurdle if $51.30 is breached. Notably, the 23.6% retracement ($46.90) underpinned the May pullback, reinforcing its relevance as support.
Confluence & Divergence
Confluence exists at $48.50–$48.80, where the 50-day MA, prior consolidation lows, and Fibonacci 23.6% retracement converge to form robust support. The MACD crossover and Bollinger Band expansion mutually validate the breakout above $50. No material divergences were observed, though KDJ’s approach to overbought levels suggests monitoring for profit-taking near $51.30 resistance. Overall, technical structure favors bullish continuation, with volume sustainability and Fibonacci resistance as key watchpoints.