Shares of United Airlines Holdings ( UAL) opened higher on the heels of an earnings beat but the shares turned lower about 30 minutes into Wednesday's session. Let's review the charts and the condition of the indicators.
In the daily Japanese candlestick chart of UAL, below, I see a large bearish engulfing pattern playing out on Tuesday and Wednesday. Bearish confirmation is needed on Thursday but a serious top reversal looks to be in play now.
Trading volume increased in recent sessions and that weakens the picture. With higher volume in the past four days, a close below the low of the past four days puts these buyers at a loss and disadvantage to make money.
The daily On-Balance-Volume (OBV) line is turning down and the Moving Average Convergence Divergence (MACD) oscillator has begun to narrow. 
e
In the weekly Japanese candlestick chart of UAL, below, I see a less-than-bullish picture. Prices rallied above the 40-week moving average line but trading volume has been drying up for months.
The OBV line is stable but also not far from making a new low for the move down. The weekly MACD oscillator is struggling to move into bullish territory.
In this daily Point and Figure chart of UAL, below, I can see a potential upside price target around $80 but also a trade at $49.52 could weaken the picture.
e Bottom-line strategy: UAL is making a top reversal before our eyes. Avoid the long side of UAL.
