United Airlines (UAL) shares have been trading higher since September. The stock is up to the $52 area which has been a barrier to advances in the past. Let's check and see if UAL has the right stuff now for an upside breakout.
In the daily bar chart of UAL, below, I can see that the shares have made upside progress since a low in late September. Prices are now trading above the rising 50-day moving average line and above the bottoming 200-day moving average line.
The On-Balance-Volume (OBV) line has been firm since October. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and looks poised for a fresh outright buy signal.
In the weekly Japanese candlestick chart of UAL, below, I see a saucer-like pattern in the prices. UAL trades above the rising 40-week moving average line.
The weekly OBV line has been stable since October. The MACD oscillator is bullish. There is some resistance in the $55-$60 area but a strong close above $55 could precipitate further gains.
In this daily Point and Figure chart of UAL, below, I can see an upside price target in the $85 area. A trade at $55 is needed to refresh the uptrend.
In this weekly Point and Figure chart of UAL, below, I can see an upside price target in the $84 area.
Bottom-line strategy: Traders should wait for a rally to the $55 area or higher before going long.
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