UAL slides to lowest close since July 9th
United Continental Holdings Inc. (UAL) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, UAL finished the month -9.33% lower at 31.38 after losing $0.36 (-1.13%) today on low volume, significantly underperforming the S&P 500 (0.77%). Today's close at 31.38 marks the lowest recorded closing price since July 9th. Closing below Thursday's low at 31.55, the market confirmed its breakout through the previous session low after trading up to $0.86 below it intraday.
Daily Candlestick Chart (UAL as at Jul 31, 2020):
Friday's trading range has been $1.08 (3.41%), that's far below the last trading month's daily average range of $2.00. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for UAL.
One bullish candlestick pattern matches today's price action, the Hammer. The last time a Hammer showed up on July 6th, UAL actually lost -7.55% on the following trading day.
After trading as low as 30.69 during the day, United Continental found support at the 100-day moving average at 31.01. Prices are trading close to the key technical resistance level at 32.18 (R1).
The stock 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 four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 100" stand out. Its common bullish interpretation has been confirmed for United Continental. Out of 32 times, UAL closed higher 53.13% 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 62.50% with an average market move of 1.51%.