Monday, 9 September 2013

UAL - climbing once again

With the main equity market melting higher, United Continental (UAL) closed with significant gains, +4.4% @ $31.03. With Oil prices cooling down a little, the airline stocks are battling back after recent strong falls.

UAL, daily


Today effectively bust the recent bear flag, and is a very strong breakaway from the 200 day MA.

Next key target are the low $32s, just another 3.5% higher, where the 50 day MA lurks, along with a declining upper bollinger.

Across the last few months, there is strong price resistance in the 32/33s.

Arguably, the only decent UAL long, is on a break into the $34s. Similarly, for the bears, a safer short-side play would be chasing it lower in the $28s.

The immediate problem remains the US/Syria issue. If Oil prices spike on any overnight/weekend attack, the airline stocks are going to be severely impacted by rising oil prices - even if only temporary.

What is clear though, in the immediate term..trend is indeed up!