Delta Air Lines Stock Could Break Major Support

Delta Air Lines, Inc. reaffirmed first quarter profit estimates earlier this week while forecasting revenues at the high end of expectations. Projected unit growth at 5% seems reasonable, given the strong world economy and continued growth in consumer spending. Market players now await the official release on April 12, when analysts have an opportunity to grill executives on urgent short-term issues such as the company’s large China exposure.

The pre-announcement had a limited impact on the stock price, which is struggling to hold support in the low $50s. That follows the bearish trajectory of rivals American Airlines Group Inc. and United Continental Holdings, Inc. , which have underperformed since the tariff mantra began in January. Given the likelihood that trade disputes will continue through 2018, shareholders may wish to pull up stakes and rotate capital into less exposed sectors. (See also: Why Airlines Aren’t Profitable.)

Delta Air Lines stock has sold off to 2015 support levels and could break down in the coming weeks. …read more

Read more here: Delta Air Lines Stock Could Break Major Support

Category: DAL, AAL, UAL

Leave a Reply

%d bloggers like this: