Delta Air Lines has resumed its bullish trend.

The company’s fundamentals are strong. Sales are steadily growing and so is net income even when not taking into account its non-cash net gain due to reversal of the tax valuation allowance of USD 8.5 billion last year. Moreover, analysts have largely revised upward their revenue prevision for the coming years, showing the good momentum of the activity. Furthermore, the financial situation is improving, debt is decreasing and therefore leverage should be reduced to a near zero one in 2016. The group seems undervalued compared to its peers with a P/E ratio of 13.4x 2014 estimates. Finally, the stock is supported by a strong buy consensus and offers an interesting potential when considering the average target price.

Technically, the security shows a strong bullish configuration on all time scales within a long term ascending channel. Late upward EPS revisions have launched the stock back on its rising trend and prices are supported by increasing moving averages. The share has broken another resistance level and its 20-week moving average should help the stock to keep its uptrend.

Thus, active investors could take a long position at the current price aiming for USD 42, top of this ascending channel. A stop loss will be placed under USD 35 avoiding a consolidation phase.