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On Thursday morning, Delta Air Lines (NYSE:DAL) warned that fourth-quarter revenue would be slightly below its prior forecast. The stock then traded lower by more than 8 percent to $45.80 a share, which is below its important 200-week moving average. This pattern usually indicates further weakness ahead.
Traders and investors should now watch the $43.50 area as the next major support level. This area is where the stock was defended in April 2017 and will likely be defended again when retested. Please remember, Delta is scheduled to report earnings on January 10, 2019 before the opening bell.
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