oerboom

Decisive moment for UAL

Long
NASDAQ:UAL   United Airlines Holdings, Inc
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).
Comment: UAL has a few grim sessions since this post went up, so we can rule out scenario (1)

Comments

Is it going up or down
+1 Reply
oerboom Ameernasir
@Ameernasir, $50 is a major psychological level for UAL, this airline represents the entire "resumption" of normalcy in the U.S., so I don't think we will see a full candle beneath $50. I think we'll see a slow one-month-long climb back to the target level $57+.
Reply
How long you think until we’ll know you think
Reply
What do you think
Reply