Checking United Airlines' Flight Indicators Ahead of Earnings
Will the stock get a lift or suffer from too much baggage?
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United Airlines UAL is scheduled to report their latest quarterly results after the close of trading Tuesday. Are the shares going to get a tailwind or get buffeted by headwinds from the numbers?
Let's check out the charts and indicators.
In the daily bar chart of UAL, below, I can see that the shares have weakened in the past few weeks. UAL has broken an uptrend from the late October low. The shares trade below the 50-day and the 200-day moving average lines.
The On-Balance-Volume (OBV) line has turned lower from late February telling us the sellers of UAL are now more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is now below the zero line in sell territory.
In the weekly Japanese candlestick chart of UAL, below, I can see a large bearish engulfing pattern in March. This top reversal pattern has turned the trend from up to down.
The weekly OBV line has remained in a three-year downtrend. The MACD oscillator recently moved above the zero line but is crossing back down again.
In this daily Point and Figure chart of UAL, below, I can see a potential downside price target in the $36 area.
In this weekly Point and Figure chart of UAL, below, I can see a downside price target in the $32 area.
Bottom-line strategy: I have no special knowledge of what UAL will tell shareholders but the charts and indicators do not give me confidence. Traders should avoid the long side of UAL.
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