UAL closes lower for the 2nd day in a row
United Continental Holdings Inc. (UAL) Technical Analysis Report for Jul 08, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, UAL finished Wednesday at 32.53 losing $0.02 (-0.06%), underperforming the S&P 500 (0.78%). Today's close at 32.53 marks the lowest recorded closing price since June 2nd. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (UAL as at Jul 08, 2020):
Wednesday's trading range has been $1.71 (5.41%), that's far below the last trading month's daily average range of $2.98. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for UAL.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After trading as low as 31.32 during the day, the share found support at the 50-day moving average at 31.43. The last time this happened on May 29th, UAL gained 5.06% on the following trading day. Unable to break through the key technical resistance level at 32.60 (R1), the stock closed below it after spiking up to 33.03 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
United Continental shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling might move prices lower should the market test June's close-by low at 27.95.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 50" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for United Continental. Out of 34 times, UAL closed lower 58.82% 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 52.94% with an average market move of -0.27%.