• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

United Continental Could Take Off on the Upside

Let's check out the charts of UAL on our way to the gate.
By BRUCE KAMICH
May 28, 2019 | 02:54 PM EDT
Stocks quotes in this article: UAL, AAL

United Continental Holdings  (UAL) was favored by Jim Cramer during Thursday night's 'Lightning Round' on his Mad Money program. Cramer responded to a caller, "American Airlines (AAL) : "It's doing really well, but people want United Continental."

Let's check out the charts of UAL on our way to the gate.

In this daily bar chart of UAL, below, we can see a rally from June/July to late November followed by a sideways trading range. From October someone has been buying dips on UAL in the $80-$77 area. Rallies to the $90 area failed in February and again in late April and early May.

UAL is likely to breakout of this sideways range at some point in time - the question is in which direction. Prices are below the declining 50-day moving average line and below the flat 200-day line.

The daily On-Balance-Volume (OBV) line was positive until early December and then it turned neutral.

The Moving Average Convergence Divergence (MACD) oscillator has been crisscrossing the zero line the past year.

In this weekly bar chart of UAL, below, we can see the sideways trading range with prices below the cresting 40-week moving average line.

The weekly volume bars look like they have been declining the past 12 months and the weekly OBV line looks like it has been drifting lower the past year.

The MACD oscillator is hugging the zero line recently. Further weakness looks more likely than a turn to the upside.

In this Point and Figure chart of UAL, below we can see the sideways price action with more X's and O's in the lower half of the pattern. A longer term upside price target of $114 is being indicated. A decline to $76.72 would weaken the charts.

 

Bottom line strategy: I prefer to buy strength as opposed to buying a dip, and for UAL I would wait for a rally above $86 before going long and would add to longs above $90. Risk below $78.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Airlines | Mad Money

More from Investing

Market's Really Bearish, and Yet Virtually Bullish. Makes Sense to Me

Helene Meisler
May 31, 2023 6:00 AM EDT

Are investors climbing a wall or worry or are they too wild about AI tech stocks? Let's answer that question, look at breadth, panic and more.

It's Big-Cap AI Stocks Vs. Everything Else

James "Rev Shark" DePorre
May 30, 2023 4:35 PM EDT

The biggest problem now is that the big-cap names are not acting as leaders.

Beyond Meat and Peloton: Zombie Stocks Can Turn Portfolios Into the Walking Dead

Brad Ginesin
May 30, 2023 3:30 PM EDT

Don't confuse a stock revival masquerading as a living, breathing business revival.

In Case You Missed It: Apple Just Hit a New 52-Week High

Bruce Kamich
May 30, 2023 2:45 PM EDT

Let's not ignore the strength in AAPL.

Where Can Investors Slip Into Shares of Skechers?

Bruce Kamich
May 30, 2023 2:29 PM EDT

The charts show where SKX's prices would be the perfect fit.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 09:48 AM EDT CHRIS VERSACE

    Latest AAP Podcast With Portillo's CEO!

    Listen in as we talk with a rising star in the Chi...
  • 03:25 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Don't Just Sit There and 'Hope' for Your Stocks, M...
  • 07:32 AM EDT BOB LANG

    Webinar Thursday After the Close: Option Spread Trading

    Thursday, my good friend and colleague Sam DeMarco...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login