UAL runs into sellers again around 35.36
United Continental Holdings Inc. (UAL) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
UAL finished the month 23.43% higher at 34.61 after edging lower $0.66 (-1.87%) today on low volume, strongly underperforming the S&P 500 (1.54%). Trading up to $1.37 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (UAL as at Jun 30, 2020):
Tuesday's trading range has been $2.13 (6.16%), that's far below the last trading month's daily average range of $3.67. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for UAL. Prices continued to consolidate within a tight trading range between 31.03 and 35.50 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Doji showed up on June 11th, UAL gained 19.03% on the following trading day.
After having been unable to move above 35.50 in the previous session, United Continental ran into sellers again around the same price level today, missing to move higher than 35.36.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 35.50 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 31.81 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for United Continental. Out of 550 times, UAL closed higher 49.64% 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 56.00% with an average market move of 1.01%.