UAL - snaps to the upside

Whilst the main US market closed just a touch higher, United Continental (UAL) was one of the strongest gainers - on heavy volume, closing +8.1% @ $33.69. Near term trend now looks bullish, and the original H/S price formation should now be dismissed.


UAL, daily

Summary

*I've no idea why UAL surged today. No doubt 'some' of the gain was due to a significant amount of bears covering in the $33s, but still..8% is a very significant gain, and the door is now wide open to a test of the $35 highs of mid May.

The problem the airline stocks have are higher Oil prices. If WTIC Oil puts in a July close >$110, it will put considerable pressure on margins on UAL...and all the other airlines out there.

One to watch in the weeks ahead.