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This is the Delta Airlines chart for this year. The chart is just to describe the question and not get any personal advise.

Can we look at the chart for this year and speculate about the stock's potential rise by looking at its technical characteristics?

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From the chart you can see that DAL has support in the $37 area and resistance around $43. However, that's a hindsight conclusion and it has no predictive value.

Like other stocks, DAL will move up or down based on company news as well as what the market does.

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  • Is the reason behind the resistance due to the investors are selling stocks at the price of $43? Or is it due to some other reasons like the stock exchange has put some limit on how much the stock price can rise?
    – wonderful world
    Commented Sep 24, 2021 at 10:41
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    Support is where demand is strong enough to stop the stock from falling more. The reasoning is that buyers are more inclined to buy and sellers are less inclined to sell. Resistance is where supply is strong enough to stop the stock from moving higher. A simple example of the psychology behind it is that if you bought a stock at $40 and sold it at $45, if you still favored the stock, you'd be willing to buy it back if it dropped back to $40. Bear in mind that these are reference points. With news, there's nothing to stop share price from breaking through these levels.
    – Bob Baerker
    Commented Sep 24, 2021 at 12:35
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    Continued: Read this.
    – Bob Baerker
    Commented Sep 24, 2021 at 12:35

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