UAL closes higher for the 3rd day in a row
United Continental Holdings Inc. (UAL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, UAL finished Wednesday at 38.30 gaining $1.50 (4.08%), strongly outperforming the S&P 500 (-0.46%). Today's close at 38.30 marks the highest recorded closing price since June 18th. Closing above Tuesday's high at 37.88, the share confirmed its breakout through the previous session high after trading up to $1.02 above it intraday.
Daily Candlestick Chart (UAL as at Sep 16, 2020):
Wednesday's trading range has been $2.53 (6.86%), that's above the last trading month's daily average range of $1.97. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for UAL.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 37.99 (now S1), which is likely to act as support going forward. After having been unable to move lower than 36.38 in the prior session, the stock found buyers again around the same price level today at 36.37. The last time this happened on September 8th, UAL actually lost -3.35% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying could move prices higher should the market test August's nearby high at 39.86.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for United Continental. Out of 144 times, UAL closed higher 56.94% 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 55.56% with an average market move of 1.08%.