Delta Air Lines, Inc. (DAL) shares rose nearly 5% on Thursday – and jumped a further 1.5% in early hours on Friday – after the company reported better-than-expected fourth quarter financial results. Revenue rose 8.4% to $10.25 billion – beating consensus estimates by $90 million – and net income of $0.96 per share beat consensus estimates by seven cents per share. The company also boosted its guidance for the full year due to tax reform.

The move came a few days after American Airlines Group Inc. (AAL) and United Continental Holdings, Inc. (UAL) reported better-than-expected unit revenue for the fourth quarter. For its part, Delta reported passenger unit revenue that jumped 4.2% during the quarter, as well as cargo revenue that rose 14.4%. Management plans to continue boosting its top line by 4% to 6% while improving its cost trajectory and integrating its partner network. (See also: Delta Posts Fourth Quarter and 2016 Earnings.)

Technical chart showing the performance of Delta Air Lines, Inc. (DAL) stock

From a technical standpoint, the stock broke out from upper trendline and R1 resistance at $57.97 toward R2 resistance at $59.95. The relative strength index (RSI) moved to overbought levels at 70.97, but the moving average convergence divergence (MACD) could see a near-term bullish crossover. This could signal the start of a new trend higher, with prior trendline and R1 resistance serving as new support levels.

Traders should watch for a brief period of consolidation around R2 resistance at $59.95, which could moderate the RSI before a possible breakout from these levels to fresh highs. If the stock breaks down from trendline and R1 support, traders could see a move back down to the lower trendline and pivot point support at around $54.87. The bright spot is that many analysts have become bullish on airlines as unit revenue has improved. (For more, see: Delta Gives Massive Order to Airbus Over Boeing.)

Chart courtesy of The author holds no position in the stock(s) mentioned except through passively managed index funds.

Want to learn how to invest?

Get a free 10 week email series that will teach you how to start investing.

Delivered twice a week, straight to your inbox.