#UAL weekly reversal @ Yearly R1 PivotHello dear Traders,
Here is my idea for #UAL
Price closed below yellow line
Targets marked in the chart
Invalidation level marked with red line
Good luck!
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0LIU trade ideas
UAL bullish breakout on try 3UNITED AIRLINES HOLDINGS, INC price has mostly been below the 1D Cosmic Channel Lite basis line since the start of Corona but has now broken above it on attempt number 3, albeit for the second time since the pandemic began. The 15 minute chart provides the context needed to determine if this breakout will hold.
UAL - Break out?Three years of Covid pain looks to be over. Breaking out in a positive direction. Earnings are in a few days, might go back down to test.
Pick some up, hold your nose, and always be ready to sell it. If it tanks, use it to tax harvest for the TECH rally.
Just a trade, not a value play
40BB in Rev
0 net income
33BB in debts
United Airlines Might Be Taking OffUnited Airlines has been going sideways for 2-1/2 years, but now it may be getting ready for takeoff.
The first pattern on today’s chart is the series of higher lows over the past month as prices remained below November 11's closing price. The result was an ascending triangle that UAL escaped yesterday.
Next, Bollinger Band Width narrowed last week to its tightest reading since the coronavirus pandemic. That could give it potential for prices to expand.
Moving averages could also give some signals. Notice how the short-term 8-day exponential moving average (EMA) has remained above the 21-day EMA since mid-October. (Shown on this chart by our 2 MA Ratio custom script.) The longer-term 50-day simple moving average (SMA) is also nearing a potential “golden cross” above the 200-day SMA.
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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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UAL: Flying higher?United Airlines Holdings
Intraday - We look to Buy at 39.70 (stop at 36.45)
This stock has recently been in the news headlines. Our outlook is bullish. Trading within the Wedge formation. The bias is to break to the upside. A break of resistance at 40.00 should lead to a more aggressive move higher towards 49.00.
Our profit targets will be 48.57 and 52.00
Resistance: 48.60 / 61.00 / 81.00
Support: 37.00 / 31.00 / 20.00
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Technicals vs Fundamentals for AirlinesFirst off, we have gotten through the initial sell off of airline securities. Covid obviously being the first one to cause the markets to dive , not just for travel but several areas of the market. As we get into 2021 we see a revival in people beginning to go back out and travel as restrictions lighten up.
According to RSI, UAL had almost become overbought due to this climb in travel . Obviously for those who bought the dip figured this would be a good time to sell and make a quick buck off of the roughly 200% or so increase in the value of the stock. Based on the technical side , entry and exit strategy was mainly based around what they relative strength index was showing.
Looking at the fundamental side , we need to keep in mind one very large factor . And of course always consider the bigger picture given what has happened in the past two years. The government taking trillions upon trillions of dollars from FED is going to have it's repercussions. On top of the major indices running for a decade long at a substantial amount of growth with no any real data to back it up , the diluting of the dollar was done just from making to much of something . As reports of inflation cuts back. we are going to be seeing the average consumer cutback on certain items . Travelling is definitely going to be one of the first things to go on that list of cutbacks , not to mention we see a sell off with NASDAQ:UAL NASDAQ:UAL once gas prices nationwide begin to skyrocket due to the the impact on raw materials from The Russian Ukraine War .
Like most securities, the future here is unpredictable . UAL and other airline stocks are currently sitting at what I would consider Lower highs and lows. the put it blatantly , my new marked off area of support and resistance only encircles an underbought zone and the technicals infer that it would be a good time to buy. On the other side , the fundamentals may not quite agree , demand for using airline companies just doesn't have the brightest future based on what we are seeing in the current global market (oil+gas) and the national economy(inflation).
UAL Bearish inclined naked calls 26 Aug expiryWhats The Plan/Trade/Thought
Airlines are doing well with the travel surge, but they are throttling this growth as their operations are unable to handle the demand and the macro economics
Flight delays and cancellations have battered the US industry this year as consumers starved for travel during the pandemic have forked over higher fares and crammed onto aircraft. The disruptions, fueled in part by labor shortages and air traffic control issues, have boosted costs as carriers seek to recover from two years of losses. Now concerns are rising that inflation could quash demand.
www.bloomberg.com
Both DAL and UAL had lacking earnings which is expected
Risk Mitigation
There is an S&R point at 41.10 and 39.88 (9.51% from entry). These are my alert points where I need to get out because I would probably be wrong
Imagine Yourself Taking The Other Side
The flip side would be markets rising despite the interest rate increases. This is a possibility but I won’t take this stance as it is even more risky given the larger bearishness and uncertainty
Look For New Information
I’m rejecting that interest rate hikes could be already priced into the market and as such it will start rallying
Meta also just posted their first ever revenue drop in their Q2 earnings and given how Tech is driving the entire market sentiment this aligns nicely to my bearish stance
Microsoft also misses estimates and reported lowest earnings growth in two years
How Do I Feel Now
Feel abit edgy, because it is really late for optimal Aug trade entries, but we needed to wait because of the Earnings and Interest Rate announcements
Trade Specs
Sold 210 @ 0.30
Strike 43
21% to Strike
74K BP Used
Max Gain: 6300
UAL Bearish inclined naked calls 9 Sep expiryWhats The Plan/Trade/Thought
Similar hypothesis to July’s UAL trade
I do feel that Airline would be the next sector to move upwards as the airline start coping with the travel surge. I would probably have to be more cautious on this after Sep
Flight delays and cancellations have battered the US industry this year as consumers starved for travel during the pandemic have forked over higher fares and crammed onto aircraft. The disruptions, fueled in part by labor shortages and air traffic control issues, have boosted costs as carriers seek to recover from two years of losses. Now concerns are rising that inflation could quash demand.
www.bloomberg.com
Both DAL and UAL had lacking earnings which is expected
Risk Mitigation
There is an S&R point at 41.10 and 39.88 (9.51% from entry). These are my alert points where I need to get out because I would probably be wrong
Imagine Yourself Taking The Other Side
The flip side would be markets rising despite the interest rate increases. This is a possibility but I won’t take this stance as it is even more risky given the larger bearishness and uncertainty
Look For New Information
No new information
How Do I Feel Now
I feel confident about this trade, espeically since we have seen 3 days of pull back with solid red candles rejecting the 39.88 S&R line
Trade Specs
Sold 230 Call options @ 0.2
Strike 43
14.86% to Strike
BP Used: 86,284.50
Max Gain: 4,450