UAL closes lower for the 2nd day in a row
United Continental Holdings Inc. (UAL) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, UAL finished the week 34.04% higher at 32.84 after losing $2.71 (-7.62%) today, notably underperforming the S&P 500 (-3.37%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 34.53, the share confirmed its breakout through the prior session low after trading up to $2.50 below it intraday.
Daily Candlestick Chart (UAL as at Mar 27, 2020):
Friday's trading range has been $3.17 (9.05%), that's far below the last trading month's daily average range of $6.18. 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.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on July 26, 2019, UAL actually gained 0.09% on the following trading day.
Prices are trading close to the key technical support level at 30.74 (S1).
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 "Decisive Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for United Continental. Out of 302 times, UAL closed higher 52.65% 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 57.62% with an average market move of 0.64%.