Airline stocks have been poor performers, despite the short term pullback in crude oil recently experienced.
UAL's peers seem to be in an downtrend and with the formation of the head and shoulders formation, any break of the neckline would indicate a short.
Additionally on the chart above we have the MACD turning negative , RSI falling and a daily squeeze...
UAL is approaching our first support at 78.91 (horizontal overlap support, 100% fibonacci retracement, 50% fibonacci retracemenet) where a strong bounce might occur above this level pushing price up to our major resistance at 88.11 (50% fibonacci retracement).
Stochastic (55,5,3) is also approaching support where we might see a corresponding bounce in price.
96 Relative strength rating. Nice consolidation during market rout. One of the strongest in Airlines group.
On weekly recovering from small pullback after breaking out of long base.
