Thursday 25 October 2012

UAL - taking a nosedive

United Continental (UAL) slipped lower by 5% to $19.25 after earnings failed to please Mr Market.


UAL, daily


Summary

UAL remains in what is a giant bear flag, and it closed today sitting on the lower channel. It would seem very likely there will be further downside in the days ahead - due to sheer underlying momentum, and that will open a re-test of the August $17.50 low.

If the August low fails to hold, then a move to $15 seems likely into year end.