UAL runs into sellers again around 39.78
United Continental Holdings Inc. (UAL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
UAL ended Thursday at 35.55 edging lower $1.05 (-2.87%), notably underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (UAL as at Mar 26, 2020):
Thursday's trading range has been $5.24 (13.65%), that's slightly below the last trading month's daily average range of $6.22. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for UAL.
In spite of a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 30.74 (S1). After having been unable to move above 39.47 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 39.78. The last time this happened on February 25th, UAL lost -5.72% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for United Continental. Out of 582 times, UAL closed higher 54.47% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.11% with an average market move of 1.19%.