Travel demand and lower fuel prices boosted airline stocks last month. Delta Air Lines is up almost 23% from this time last month.

Taking a look at Delta Air Lines as travel demand has boosted airline stocks in the last couple of months. According to some analysts at Reuters, airline stocks had their best month last month in two years due to the ‘summer rush’ and lower fuel prices. One airline that has certainly benefited has been DAL. Currently, its stock price is trading at around $47.98 a share. Looking at the chart from a technical point of view, we can see on the daily timeframe that from March till the beginning of June, the price was just floating sideways. Then on the 6^th of June, the resistance of $36.45 was clearly broken (dotted trendline), which led to a rise towards the resistance of $40.29. On the 13^th of June, we saw another breakthrough above $40.29 (upper white trendline of the channel) followed by a few days of consolidation, which in turn then led to a further rise towards the current levels. The next level of resistance now sits at $48.90 and a move above could see a rise towards $50-$51 a share. However, looking at the technical indicators, MACD is starting to falter and looks like it may turn negative. The RSI is also suggesting that the stock is currently overbought as it reads 77. There may be a short-term retracement after the sharp climb. The support sits at $46.48 (along the green trendline), a break and close below could see a test of support levels at $45.40 and even $42.30. Though this is not guaranteed and the price could consolidate and continue higher. Traders and investors should also take into consideration the upcoming earnings which are due on Thursday. The airline is expected to report earnings of $2.35 on revenue of $14.31bn.