bear call spread UAL25% ROI UAL at the top of a nice channel, willing to unravel if strength continues or sell a bull put spread on a retracement down
UALD trade ideas
$UAL Trading a breakout in United Airlines. Entry level $88.50 = Target price $97.00 = Stop loss $87
Trading for the breakout on earnings tomorrow.
Stock is in a very tight range and the move should be quite frantic.
Indicators are bullish.
Fundamentals are strong, Fuel costs remain low and passenger demand increase.
Downside is limited.
UAL Approaching Support, Potential Bounce!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.
BUY $UAL under $95 SELL $UAL over $95.25The chart speaks for itself. It's an inversion of United States broader market index movements (defensive sector rotation). As broader markets trend lower over the next week, UAL will continue a slow path upward and most likely over 95.50 for a moment. But just as the going seems to be good for $UAL, and as everything seems to be nosediving in broader SPY index, suddenly UAL will descend upon the lower ranks of well, lower. Probably 5 points lower, at least.
Clear pattern for UAL (United Continental) - Short or buy putsWe have one of the most prominent channeling patterns here in UAL. We also have global tensions in the Persian gulf leading to concerns about oil prices going higher. Taken altogether, now is a great time to buy some near the money put options for UAL. Perhaps the July 26 or August 2 87 strike puts.
United Continental Rallying on EarningsI've been watching the airlines to try to figure out where the big money players are stashing their aerospace investment dollars, and it looks like they're flocking to UAL after a 12.50% earnings surprise this morning. The stock rallied with a upward opening gap and the bulls held out over the day. The move is large enough to push up against and widen the top Bollinger band, and while the price is above the 52-wk average and the 20-day average is below the the 200-day which is below the 50-day, indicating that this is a minor inflection downward presenting a buying opportunity before the trend traces further to the upside.
MACD broke positive and held in the last two weeks, and this earnings rally is showing signs of establishing a longer running trend. RSI is just starting to peak near 70 since the mid-March low when the entire airline and aerospace industries took a beating following the Ethiopian 737 MAX crash. Volume is spiking but almost no short interest rise shows that the crowd isn't willing to bet against UAL's rally.
$UAL Not confident going into earnings tonight, nice short.Technically it is hard to be positive prior to UAL earnings report after the close. The chart has negative signal throughput, gaps needs filled, possible H&S formation, well defined downtrend resistance and a very defined drop on the Chaikin Money Flow. As a sector the transports have lagged the market and UAL looks like a definite short for us, with a stop lose above trend-line.
United Continental Holdings Inc (UAL) - Head and Shoulders SHORTAirline 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 pushing to the downside.
Previously similar price action has played out with price breaking from $86.00 and finding support at $78.00
