Friday 28 September 2012

UAL - big bear flag

United Continental (UAL) is presenting a large bear flag for Q4. Whilst the main indexes are barely 3% from the sp'1474 high, UAL continues to look weak - although that is especially the case within the Transportation sector.


UAL, daily


Summary

First target is a break of the lower channel of 18.50, rising to 19.00 later next week. A break of this, should open up a quick of the August 17.40s low.

Considering that WTIC Oil was back below $90 this week, UAL is performing especially weak, and from a chart perspective, the current formation is a very straight forward bear flag.

The underlying momentum MACD cycle has only just gone negative cycle

Only with a break back above $21 could UAL be said to be starting a new phase. Right now, with the tranny closing the month <5000, it looks like UAL has some turbulence imminently due.