Earnings looming

Taking a look at Delta Air Lines ahead of its earnings results tomorrow. Currently, its stock is trading at around $46.96 a share in the pre-market session. Applying the moving averages to the weekly chart, we can see the price has moved back below its 20-day moving average for the first time since January. Perhaps some profit-taking is taking place heading into the earnings season. Hence, the near term support here for investors is firstly last week’s low of $45.35 and then around $42.46, which is along the 50MA that also corresponds with the December highs. A break below the 50MA after the earnings could also see the 200MA offer support if needed. A positive reaction after the earnings may see the price climb back above the 20MA, which currently reads $47.98. A move and close above this level would allow investors to target the resistance of $53.90 once again, which has proven its resilience thus far.  However, caution should remain as we can see the technical indicators have started to falter just as they did back in July of last year. The MACD has turned negative and the RSI has entered a neutral level, in a similar manner that occurred during the last summer. It is not guaranteed that a similar move will occur again but stocks can tend to follow historical patterns.