Delta Air Lines, Inc. (NYSE:DAL) stock could jump into the mid-$60s per share

Delta Air Lines, Inc. (NYSE:DAL) stock could jump into the mid-$60s per share

Delta Air Lines, Inc. (NYSE:DAL) stock could jump into the mid-$60s per share

Delta Air Lines Inc stock could jump into the mid-$60s per share from around $50 now if it can hit its earnings target of $6 to $7 a share this year, up from $5.65 in 2018, according to an analyst in a Barron’s article on Sunday.

Atlanta-based Delta is “the leader in fare segmentation, international alliances, and technology, as well as maintenance and repair,” Ross Margolies, who heads Stelliam Investment Management, said in the article.

The article noted rumors that Warren Buffett’sBerkshire Hathaway Inc could be interested in buying an airline, noting Berkshire already owned about 10 percent of each of the four major U.S. carriers: Delta, Southwest Airlines Co, United Continental Holdings inc, and American Airlines Group Inc.

Officials at Delta said the company did not have any comment on the Barron’s article beyond Delta Chief Executive Ed Bastian’s quotes in the story.

Bastian told Barron’s that “investors want to see our margins expand.” Delta aims to boost margins this year and increase earnings per share by 15 percent, he said.

As for the potential Berkshire Hathaway interest, Bastian said: “We’re open for sale every day of the year. We think the future is bright and our valuation is cheap.”

Overall, the bias in prices is: Downwards.

The projected upper bound is: 52.47.

The projected lower bound is: 46.78.

The projected closing price is: 49.62.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 27 white candles and 22 black candles for a net of 5 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 60.9090. This is not an overbought or oversold reading. The last signal was a buy 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 45.68. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 43 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -72. This is not a topping or bottoming area. The last signal was a buy 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 6 period(s) ago.

Rex Takasugi – TD Profile

DELTA AIR LIN closed unchanged at 49.590. Volume was 14% above average (neutral) and Bollinger Bands were 46% narrower than normal.

Open High Low Close Volume___
49.190 49.600 48.920 49.590 1,993,156

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 49.89 49.40 53.35
Volatility: 18 37 34
Volume: 2,195,561 1,850,922 1,558,740

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

DELTA AIR LIN is currently 7.0% below its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of DAL.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on DAL.N and have had this outlook for the last 2 periods.

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