ual w3 setupthis is a risky one, but i have this feeling the travel sector is going to see a large influx of money over the coming days.
w3 target = $57
UAL1 trade ideas
Take-off for UAL but it could be a dangerous flightUAL recently smacked a support level at around $48 and seems it could possible rebound to the upside. However there is very major catalysts for UAL to further within the coming weeks. Covid is still relentless as always and with the new 'Delta variant' proving to be more adaptive, and dangerous it could potentially impact the already suffering fundamentals of the airline industry. One thing going against the virus is the current vaccine rollout which is currently on par with expectations. This could then act as a buffer for UAL despite the new developing strains such as the delta and lambda variants.
As its currently summer in the US as expected flights have been increasing and interestingly enough even bet pre-Covid levels which is great news for UAL and other airlines.
From a technical standpoint indicators push a bullish narrative with the Bollinger bands, rsi and mean reversion being oversold signalling a buy opportunity.
Alot of support levels also were prominent where there was support level from the 32.8% Fibonacci level, linear regression aswell as the 180 day sma.
Overall it appears like UAL has momentum to launch from its current price, possibly to $53 prior to hitting a resistance channel. However due to the nature of the company negative news sentiment will be very influentially on the stocks price so be wary.
Decisive moment for UALUAL has been tracing out a choppy symmetric triangle since March 2021, and has also obeyed the key ascending support since the Covid meltdown of Mar-May 2020. UAL is now testing that key support again, and 3 distinct scenarios could play out. (1) Immediate upside bounce, (2) Re-test the $50 support and recover, i.e. false break-down, or (3) fail the re-test and fall into the sub-$50 range.
All scenarios end with the same target range of $57-$60, but just have different time horizons. Anyway consider placing your stops somewhere respectful of the "trap" losses at risk in scenario (2).
Long Term Bullish The airline sector is one I see doing very well this next quarter as travel picks up again. The chart for UAL looks bullish and it seems to be consolidating at the moment. A future dip to around the $50 level would be an entry point I would like. Any large scale correction of the overall market may decrease the value of the stock below the CL but long term I do expect to get to the $75-$80 toward the end of the year.
UAL Eliot Technical analysisIf you have checked airlines recently you would notice they had a good consolidation time and ready for the next run.
I like to see UAL under $50 but it may not happen, average volume is 11M, so check out the volume and any unusaal activity is a signal for the next run.
first target is $64 and the 2nd one is $76
proximate time 6-8 weeks
Rolling (IRA): UAL September 17th 41 Short Put to the 48... for an .81/contract credit.
Comments: A continuation of my covered strangle, consisting of January '22 47 covered calls plus the short puts. It's taken off quite rapidly here, so rolled the short put up today to reduce cost basis further. Cost basis at 41.32 (See Post Below) minus .81 or 40.51. This will make this a nice winner assuming the short put approaches worthless, and it stays above 47 running into January expiry.
