United Airlines Holdings Inc. - (UAL) - September 20, 2023

United Airlines (UAL) along with its competitors, has seen its relative strength weaken dramatically in recent weeks. The group outperformed through the summer boosted by strong travel demand, but since several airlines posted profit warnings earlier this month blaming high and rising fuel and labor costs, sentiment toward the sector has soured.

Over the last four months, UAL has completed a round trip within the SIA S&P 500 Index Report, climbing from the red zone to the green zone between April and July, then falling back into the Red Unfavored Zone over the course of September. Yesterday, United landed in 282nd place, down 215 positions in the last month.

Within the transportation sector, railroads have also been struggling in the rankings, while some trucking and courier companies have held up better. Two transportation companies which remain in the Green Favored Zone are FedEx (FDX) and Old Dominion Freight Line (ODFL). This chart reminds us of the old saying “Stocks go up like an escalator and down like an elevator”. An uptrend in ‘united Airlines (UAL) which took 10 months to unfold between the October 2022 market bottom and August, has quickly unraveled. Over the last month, UAL has turned decisively downward, establishing a new downtrend of lower highs, has snapped its previous uptrend support line, and has taken out both its 10 and 40-week moving averages.

Next potential downside support appears near the $40.00 round number, which has flipped between support and resistance in the past, then previous lows near $35.00. Initial resistance on a rebound appears near $47.50 a recent breakdown point, then the $50.00 round number.

This 1% chart highlights the severity of the recent downturn in United Airlines (UAL) shares. UAL started to crumble after a July rally faltered and the shares staged a bearish Double Bottom breakdown in August. The selloff accelerated following a second Double Bottom formed a Bearish Catapult. Since then the selloff has extended without even a 3-box bounce indicating consistent distribution. More recently, UAL has completed a bearish Spread Double Bottom breakdown and snapped a 45-degree uptrend line.

Potential downside support levels appear near $41.85 based on a horizontal count, followed by $40.50 and $38.25 based on previous column lows. Initial resistance appears near $46.70 based on a 3-box reversal.

With a bearish SMAX score of 5, UAL is exhibiting weakness against the asset classes.



Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.