The weekly chart remains positive and pointed up but the daily bar chart and the Point and Figure chart are a little "iffy" and we could see a pullback before the uptrend resumes. Let's go through our preflight technical check list.
In this daily bar chart of UAL, below, we can see a bullish consolidation pattern from January to the middle of July. Since the middle of July we have seen UAL take flight from around $75 to over $95. Prices just pulled back below the now flat 50-day moving average line but remains well above the bullish 200-day average line which intersects around $78 or $79.
The daily On-Balance-Volume (OBV) line was neutral until the middle of July but then it moved up strongly telling me that buyers of UAL have been more aggressive and confirming the rally's strength.
The Moving Average Convergence Divergence (MACD) oscillator turned down at the beginning of December signaling a take profits sell signal.
In this weekly bar chart of UAL, below, we can see that prices are above the rising 40-week moving average line. Prices have more than doubled over the past three years.
The weekly OBV line is constructive and the MACD oscillator could turn down or up with the next price move.
In this Point and Figure chart of UAL, below, we see a mixed picture. UAL shows a band of chart support below the market but also a possible downside price target of $77.25.
Bottom line strategy: While the Point and Figure price target (chart above) suggests we could test the rising 200-day moving average line, nearby chart support suggests UAL will hold here and go on to make new highs. If oil/jet fuel prices stay weak, aggressive traders could go long on a close above $91 and risk a close below $85. If we get stopped out we'll consider re buying on a successful test of the 200-day moving average line.