UAL has been tracing out a choppy symmetric triangle since March 2021, and has also obeyed the key ascending support since the Covid meltdown of Mar-May 2020. UAL is now testing that key support again, and 3 distinct scenarios could play out. (1) Immediate upside bounce, (2) Re-test the $50 support and recover, i.e. false break-down, or (3) fail the re-test and fall into the sub-$50 range.
All scenarios end with the same target range of $57-$60, but just have different time horizons. Anyway consider placing your stops somewhere respectful of the "trap" losses at risk in scenario (2).
All scenarios end with the same target range of $57-$60, but just have different time horizons. Anyway consider placing your stops somewhere respectful of the "trap" losses at risk in scenario (2).
Comment:
UAL has a few grim sessions since this post went up, so we can rule out scenario (1)
