While we’re watching the stock price of United (NYSE:UAL) and the passenger incident, we’re perhaps not watching what’s happening with Delta Air Lines, Inc. (NYSE:DAL) stock, which is at a critical pivot price. What’s going on with Delta’s stock and how might it be ready for a bounce off a key target?  Let’s see:

Written by Corey Rosenbloom

...In the Daily chart below we see a standard pullback to the 50% Fibonacci level just above $44.00 per share.

We’re also seeing four (potentially) bullish reversal candles develop AT this critical price pivot.

• IF buyers indeed step in and bounce price higher from support, THEN we easily could see a short-term rally take price toward the underside of the falling 50 EMA at $47.00 per share.
• Of course, IF buyers fail and sellers work their magic, THEN we could expect share prices to continue their descent toward $42.00 per share (which would be the alternate short-term thesis at the moment).

Let’s step inside the intraday chart to note the build-up of positive divergences and how to frame a trade:

Keeping the higher frame targets (such as the $44.30 level) in mind, note the build-up of positive momentum divergences into today’s session. From there, we’re seeing at least an initial rally higher toward the underside of the falling trend line at $45.50.

Here’s the plan – carefully monitor the additional ascent toward the trend line and then consider buying a potential breakout beyond the $45.50 level to play toward $47.00 per share. It’s a short-term trade, sure, but it will be interesting to see what happens next with this stock that’s happy to see a competitor take negative press/headlines for once.