UAL - breaking a new high

Whilst the main market saw general moderate weakness, the airline stock - United Continental (UAL) broke the recent July high, and saw some significant buying interest. UAL settled +4.2% @ $36.80. The mid term outlook is bullish, primary target is the double top of 2007 in the $47s


UAL, daily

UAL, monthly, 8yr

Summary

As WTIC oil prices continue to slide, the airline stocks should be doing increasingly well in the final quarter of 2013. Indeed, Q4 earnings, to be reported in January of 2014 should be rather good indeed.

In terms of price action, today's gain was impressive, but it was not a daily close above the July high. Near term is clearly to the upside though.
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UAL remains very representative of the wider airline sector, and the rest of the sector should duly follow upwards.