Our last update on United Continental (UAL) was Oct. 22 when we said, "We look for the $50 support level in UAL to hold, but we don't expect to leave the gate until prices can clear their September highs around $62 and volume can expand on days when UAL closes higher."
UAL has delivered technically in the chart above. Prices are pushing up through the September highs, the On-Balance-Volume (OBV) line is edging higher and prices are back above the 50-day simple moving average.
The longer-term chart of UAL, above, shows the stock poised to move higher. Prices are back above the 40-week (aka 200-day) moving average, the OBV line is inching up and the Moving Average Convergence Divergence oscillator is almost back to the zero line after a sojourn lower. We look for UAL to grind up toward $70 in the next three months.