Delta Air Lines (NYSE:) has been pulling back since mid October when it traded as high as $54 a share. Today, DAL is trading around $49, which is below the important 50- and 200-day moving averages. And that tells me that the stock is in a weak technical chart position. Traders must now look lower for major chart support.
One lower level that catches my eye is the $45.50 area, which is where was defended in early September and will most likely be defended again when retested. I’d buy DAL around $45.50 with a stop loss under $44 on a weekly chart close. This trade setup should present a solid risk/reward opportunity with upside around $56.