UAL - airlines struggling

The price action in United Continental (UAL) largely reflected the action in the indexes, closing with a classic black-fail candle, settling +0.7% @ $28.65. Near term trend looks very weak, and today marked the fifth daily close under the 200 day MA.


UAL, daily

Summary

There are two key issues the airlines are facing in the near term.

-Oil prices are well over $100...and could easily spike to the 120s on an actual attack on Syria.
-US growth remains weak.

From a pure price perspective, with yet another close under the 200 day MA, UAL looks set to test the Jan'2013 lows in the $23s - that is a clear 15% lower than current levels.