Friday, 3 January 2014

UAL - climbing to the upper $40s

United Continental (UAL) closed the week with very significant gains, settling +5.8% @ $39.91. A move into the upper $40s looks viable, with a challenge of the 2007 double top high of the $48s - which seems viable by late spring.

UAL, daily

UAL, monthly, 10yr


With a successful back test in the $36s, UAL broke into the $40s for the first time since February 2008.

In many ways, the UAL daily chart is somewhat similar to the Dow and Transports, as it should do though!

Airlines still battling

UAL is still struggling (when aren't the airlines having problems of one kind or another?) but if the broader economy holds together across 2014, UAL should have a reasonable chance at putting in a few profitable quarters.

see key stats @ Yahoo finance

My main market outlook for late spring 2014 remainsa multi-month cycle peak in the sp'1950/2050 zone. If that is correct, then I would most certainly be seeking UAL to test the 2007 high in the $48s..which is a clear 20% above current levels.

UAL is most definitely one to watch, and will be a good indicator also of where the Transports index is headed into the March-May time zone.