UAL drops to lowest close since October 15th
United Continental Holdings Inc. (UAL) Technical Analysis Report for Dec 04, 2019 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, UAL ended Wednesday at 88.17 losing $0.70 (-0.79%), notably underperforming the S&P 500 (0.63%). Today's close at 88.17 marks the lowest recorded closing price since October 15th. Trading $0.65 higher after the open, United Continental was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on November 27th, UAL lost -0.27% on the following trading day. Closing below Tuesday's low at 88.50, the stock confirmed its breakout through the prior session low after trading up to $0.36 below it intraday.
Daily Candlestick Chart (UAL as at Dec 04, 2019):
Wednesday's trading range has been $1.67 (1.87%), that's above the last trading month's daily average range of $1.37. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for UAL.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 87.77 (S1).
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 92.23.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Its common bearish interpretation has been confirmed for United Continental. Out of 118 times, UAL closed lower 60.17% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 56.78% with an average market move of -0.32%.