United Airlines (UAL): Buy the DipUnited Airlines (UAL) stock recently dipped over 20% as a result of poor guidance for Q1. The company over estimated for Q1. However, United is positive for Q2 based on bookings. So, if they were to lower guidance for Q2 and the rest of the year, I would say the sell off might be justified. However, that is not the case. UAL's EPS projections remain $10 to $12 for the full year. So, this is a buying opportunity in my opinion.
The technical perspective shows the stock near an oversold condition on the daily chart RSI. The price could dip further to the next support level in the $30s, but it might find a bottom around the current level in the low $40s. Check out my link below for a full article.
UAL
$UAL Riding the Turbulence$UAL stock dropped due to Q1 cost and downtime headwinds, but airlines expect strong demand and Q2 profitability.
I'm opening 1/3 call position, adding 2 more times if weakness continues:
Strike: $45.
Exp: 6/16/23 or later
Cost: $3.60 per contract
The cost per contract could be lower based on market movements tomorrow. I plan to swing my first 1/3 $UAL call position through #FOMC and will update on this position going forward to the point of sale.
UAL in descending triangle.United Airlines Holdings -30d expiry - We look to Sell a break of 47.57 (stop at 49.87)
We are trading at overbought extremes.
Trades with a bearish descending triangle formation.
Expect trading to remain mixed and volatile.
A break of the recent low at 47.77 should result in a further move lower.
The bias is to break to the downside.
A higher correction is expected.
Our profit targets will be 41.57 and 40.57
Resistance: 51.50 / 52.34 / 53.26
Support: 49.00 / 47.77 / 46.88
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Widow Makers Airline Stocks Beat the Market by the New YearSince the beginning of the new year, airline stocks have performed exceptionally well despite the very chaotic condition of the US airspace and travel market. Here is the year-to-date performance of a few well-known airline stocks, along with the Boeing stock and the U.S. Global Jets ETF:
● U.S. Global Jets ETF (JETS): +18.56%
● United Airlines (UAL): +37.53%. Zacks EPS estimation: 2.07. Earning release: 1/17/23.
● American Airlines (AAL): +33.62%. Zacks EPS estimation: 0.60. Earning release: 1/26/23.
● JetBlue Airways (JBLU): +26.40%. Zacks EPS estimation: 0.17. Earning release: 1/26/23.
● Alaska Air (ALK): +18.16%. Zacks EPS Est. 0.88. Earning release: 1/26/23.
● Delta Air Lines (DAL): +16.31%. Reported EPS: 1.48 vs 1.29 estimated.
● Southwest Airlines (LUV): +13.15%. Zacks EPS estimation: 0.25. Earning release: 1/17/23.
● Spirit Airlines (SAVE): +6.83%. Zacks EPS estimation: 0.04. Earning release: 2/6/23.
● Boeing (BA): +10.01%. Zacks EPS estimation: 0.29. Earning release: 1/25/23.
● S&P 500: +4.60%
$DAL leading the airline industry along with $BA$DAL seems like its up for a good start on 2023. airline industry is booming after covid restriction is easing, china opening up, and the southwest disaster. DAL is leading the way with their new upgrade of free Wifi on their in-flight offerings starting on February. this news might help DAL to boost their marketing strategy to lure other loyal customer from other airlines. but in my opinion, this free wifi upgrade will be very challenging to provide in the sky, with over 150+ people using it in the same time. the CEO didn't say specific details about how fast the wifi is, is there a time limit, and vulnerability of potential hacking. but regardless of these possible complication that might occur. the free wifi is still a good news for its customer. the southwest disaster boost other airlines with their loyal customer scrambles to re-book their flight to get their destination.
DAL typical price move is $1.00 to $1.40
Below is my price level entry and exit for intraday trading or scalp play.
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For calls; buy above $36.35 and sell at 37.05 or above
For puts, buy below $35.57 and sell at $35.11 or below
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Bot generated technical analysis:
Last price: 36.02
1st resistance level: 36.35
2nd resistance level: 36.69
1st support level: 35.39
2nd support level: 34.77
Honorable mentions: $BA technicals looks strong with
travel industry starts to boom so as BOEING
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UNITED AIRLINES up by +8% post earnings but Resistance Zone loomThe United Airlines Holdings (UAL) has risen so far by +8.05% intra day following the much higher than expecting earnings yesterday (EPS 2.81 against 2.24 forecast). By doing so, the price is about to hit the 1D MA200 (orange trend-line) for the first time since June 08 2022. Despite this impressive one day rise, we can't turn bullish long-term on United just yet as despite the 1D MA200, the price just to overcome the Lower Highs Zone of the March 18 2021 trend-line.
Apart from that, the 1D RSI just entered into the Resistance Zone, which since March 2021, has formed all Lower Highs. Technically we should be expecting a pull-back to at least the 1D MA50 and then see how long-term buyers may react. If that doesn't happen and the earnings push the price further, we consider buying long-term only if the March 2021 Lower Highs trend-line breaks.
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United Airlines (NASDAQ: $UAL) Ready 2 Go Sky High! ✈️United Airlines Holdings, Inc., through its subsidiaries, provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. The company transports people and cargo through its mainline and regional fleets. It also offers catering, ground handling, training, and maintenance services for third parties. The company was formerly known as United Continental Holdings, Inc. and changed its name to United Airlines Holdings, Inc. in June 2019. United Airlines Holdings, Inc. was incorporated in 1968 and is headquartered in Chicago, Illinois.
UAL Return to Profitability This YearTomorrow UAL most likely will hit my price target from the last chart:
United Airlines Holdings, Inc. (UAL) said it expects to Return to Profitability This Year.
My new price target is $56 and maybe an ultra speculative $78 by Jan 2023.
Looking forward to read your opinion about it.
United Airlines (NASDAQ: $UAL) Looking Like A Buy Opportunity! United Airlines Holdings, Inc., through its subsidiaries, provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. The company transports people and cargo through its mainline and regional fleets. It also offers catering, ground handling, training, and maintenance services for third parties. The company was formerly known as United Continental Holdings, Inc. and changed its name to United Airlines Holdings, Inc. in June 2019. United Airlines Holdings, Inc. was incorporated in 1968 and is headquartered in Chicago, Illinois.
Airlines landing once again?!Pandemic + jet fuel prices + selling pressure will take a toll on the airlines!
In these weekly charts, it is clear that major airlines already are in a Downward channel, and they will retest their previous supports which could be another 10-15% correction in the coming weeks!
You can see the most important support(green line) and resistance (red line) levels.
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
Closed (IRA): UAL January 21st 47 Covered Calls... for a 45.41 credit.
Comments: A late IRA house keeping post. This is the last of my reopening trades. My cost basis in my shares was 43.05 (See Post Below) with a bunch of scalping around my covered call. A 2.36 ($236) winner that I'm glad to see the back of, since we have earnings in 11 days, and I'd rather not have single name risk in my IRA.
UAL Bullish inclined Naked Puts 10 Dec Expiry (Dec Track 1)Whats The Plan/Trade/Thought
This trade is slightly risky as it is not an ETF. But it's current price movement mirrors JETS etf and this will allow me to get a decent price based on my outlook on travel as a sector
Overall we are seeing Leisure and Hospitality with the largest job gains (Oct data). However in terms of Job postings, while all sectors are seeing increases. Hospitality & Tourism have the lowest postings
If you look at the high Job Gains and the low Job Postings. We can make the assumption that people are filling up Leisure and Hospitality jobs easily but the supply of jobs is just not enough for the number of candidates available.
This also means that the Leisure and Hospitality sector are being very very cautious and this is reflecting in the price movements despite the largely bullish S&P moves. However it is not contrarian, just dulled and pensive
UAL in Oct has also posted higher than expected revenue but is still below 2019 numbers (Before COVID19)
UAL has made higher lows in the past 2 months
I Feel
I feel I have a good assumption that is a reflection of the current market movement. I am also not predicting any direction in my analysis
Imagine Yourself Taking The Other Side
This is an easy position to take the other side even if I was bullish. The price is currently ranging and while it has previously broken the resistance line at 51. It has whipped back below the line.
It is possible for it to continue to range down to 43.20 and still hold true to my thoughts on the sector
Imagine Yourself As A Neutral Observer
This trade is slightly worrying based on the position of the Strike within the range.
But if I follow the overall market bullishness I feel we are at least standing on the right side of the fence.
Look For New Information
No new information, but current price movement on the 15 Nov has not followed Friday's drop and feels like it is testing the S&R line
How Do I Feel Now
I'm going to look at it from an hour, breath and then enter if nothing comes up
Trade Specs
Sold 160 Puts @ 0.33 - Strike 44
% to Strike 12.23%
ATR % is around 1%
BP used 70k
Max Gain: est $5280
Airlines have buyers at these prices!Looking at the trading volume you can see all Major airlines traded with above the average volume at these prices!
I think in the next 4-6 weeks they have the potential to gain +10%!
You can see the most important support (green lines) and resistance (red lines) to watch in the coming days in these charts!
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
United Airlines Preparing For Take-OffLooks like United Airlines (UAL) is preparing for a long run.
1 Hr shows significant oversold.
Still way below pre-Covid prices and reported a 450% increase in Holiday bookings.
This is a no brainer.
Price target around $75 - 80
Potential 60% gain!
Patience is Key!
Airlines landing once again!On November 1st, 2021 I published an analysis for major Airlines, they experienced a +10% gain and start landing again!
And then I perfectly call the resistance:
they could become a long opportunity near their support lines!
You can see the most important support (green lines) and resistance (red lines) to watch in the coming days in these charts!
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
Airlines have just find their supports!Most airlines' stocks reacted to their support level and some of them have just broken above the downward trend line..!
It seems Delta and United could perform better than others if there is a relief rally..!
A relief rally is a respite from a broader market sell-off that results in temporarily higher securities prices. Relief rallies often occur when anticipated negative news winds up being positive or less severe than expected. (Investopedia)
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor nor a certified financial analyst nor an economist nor a CPA nor an accountant nor a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.