United Continental Holdings, Inc. (UAL) was reviewed a month ago where I wrote that, "UAL is lifting off and if you want to go long do it around $78 risking below $72 for now. $100 is our round number price target."
UAL has moved higher from our recommendation so a review of our stop and price target wouldn't hurt.
(For more on UAL see Worried About the Right Thing?: Cramer's 'Mad Money' Recap)
In this daily bar chart of UAL, below, we can see a positive picture. Prices are in an uptrend above the rising 50-day moving average line and the bullish 200-day average line.
The daily On-Balance-Volume (OBV) line has been strong since early June and tells us that buyers of UAL have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since late May.
In this weekly bar chart of UAL, below, we have a bullish alignment of the indicators. Prices are above the rising 40-week moving average line.
The weekly OBV line has been rising the past four months or so, and the MACD oscillator has been above the zero line since February.
In this Point and Figure chart of UAL, below, we can see the breakout and a new higher price target of $107.83.
Bottom line strategy: Traders who are long UAL could raise sell stop protection to a close below $77 now. $108 is our new upside price target.