Bull & Bear: Delta Air Lines

Shares of Delta Air Lines DAL are flat on the session, trading at $10.00. With shares recently sliding through the 50-day moving average, you have to wonder where they could head next… Bulls: Bulls will note that shares recently formed a high-volume bottom that sent Delta Air Lines soaring above the 20-day and 50-day moving average. Delta Air Lines consolidated at that level, but have recently moved lower and are now sitting on medium-term support. If shares can bounce off of this level, the new uptrend will be sustained via lower lows. This trend would indicate that shares have the potential to pop to new highs above the recent $11.60 top (and the 200-day moving average). The stock is also technically oversold. Call volume has been escalating recently. A bullish trader could buy the July $10/11/12 call tree for a net debit of $0.27. Bears: Bears will note that shares have sold off below the 20-day and 50-day moving averages, which has forced those averages lower. The 200-day moving average continues to be downward-sloping as well. Bears will also note that crude oil and jet fuel prices have stemmed their loses and are rebounding. If shares cannot hold the $10.00 level, it is inevitable that Delta Air Lines would test the 52-week low, at $8.91. Next support would be $7.20 below that. A bearish trader could buy the July $11/9 collar (long put, short call) for a net credit of $0.02. Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The company's route network gives it a presence in every domestic and international market. Delta's route network is centered around the hub system it operate at airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita.