United Continental Rallying on EarningsI've been watching the airlines to try to figure out where the big money players are stashing their aerospace investment dollars, and it looks like they're flocking to UAL after a 12.50% earnings surprise this morning. The stock rallied with a upward opening gap and the bulls held out over the day. The move is large enough to push up against and widen the top Bollinger band, and while the price is above the 52-wk average and the 20-day average is below the the 200-day which is below the 50-day, indicating that this is a minor inflection downward presenting a buying opportunity before the trend traces further to the upside.
MACD broke positive and held in the last two weeks, and this earnings rally is showing signs of establishing a longer running trend. RSI is just starting to peak near 70 since the mid-March low when the entire airline and aerospace industries took a beating following the Ethiopian 737 MAX crash. Volume is spiking but almost no short interest rise shows that the crowd isn't willing to bet against UAL's rally.
