In today’s edition of the Daily Stock Report, we are going to feature United Airlines Holdings Inc (UAL). This is the first time we have looked at United Airlines in a year and a half. With market uncertainty growing over the last quarter, and fear of an economic recession forthcoming due to the tariff wars, many people are concerned about the global economy and may not fly as much for business or feel comfortable enough to take vacations. The SIA Platform picked up on this theme earlier this year in the case of United Airlines, showing the power of the SIA Platform and how you can get valuable calls to action on where to look for opportunities as well as what areas to avoid.
In looking at the attached relative strength matrix position chart of UAL in the SIA S&P 500 index report, we see UAL entered the favored zone on September 26 of last year at a price of $58.85. it held the favored zone until March of this year when it fell into the Yellow Neutral zone with a Red SMAX score at a price of $86.21. This represents a 46% price increase in only 6 months while in the favored zone. At this point, one may grow attached to the name and fall in love with the stock after seeing such a significant return in a short period of time, leading them to continue holding it. But as the saying goes, “Don’t fall in love with a stock — it won’t love you back!”
As such, applying a rules-based methodology, one that is objective and removes emotion from the equation, would have prompted action when UAL entered the Neutral Zone with a Red SMAX on March 4th. The appropriate response at that point would have been to seek opportunities elsewhere. From the trigger on March 4th to Friday’s close, the shares dropped to $57.67, representing a 33% loss — a loss that could have been avoided by following SIA’s signal. This exemplifies the Power of SIA in not only helping you find opportunities and when but also when it is time to “leave the party” and look for other opportunities. United Airlines is a major U.S. network carrier. United's hubs include San Francisco, Chicago, Houston, Denver, Los Angeles, New York/Newark, and Washington, D.C. United operates a hub-and-spoke system that is more focused on international travel than that of legacy peers. In looking at the Candlestick Chart, we see the stock had been in a steady uptrend since August of 2024, until reaching its peak in January. The shares then changed direction with a steady downtrend firmly intact up to today. Support is quickly approaching at the $55.00 level which coincides with the top of the brief sideways consolidation range back last Spring and then below that, the $40.00 round number. If the shares manage to reverse, potential resistance can be found at the previous low at $70 and, above that, the brief rally to $80.00 a few weeks ago.
In looking at a 2% scale on a Point the Figure Chart, we see the shares have been in a very strong and steady uptrend of a rising column of 27 X’s since August 2024, through to December. It ultimately hit its top and ran out of steam in February at the $109.00 level. Since then, the shares changed trend with a substantial column of O’s materializing which lasted 22 boxes. A brief rally ensued in late March, only to succumb to the additional pressure and a new low being established when the shares could not hold its prior support at $69.17.
Next level of support is now at $56.74 and below that, $51.39, which coincides with past resistance levels back from 2022 and 2023. Current resistance is at its 3 box reversal of $ 62.65. With a SMAX score of 4 out of 10, UAL is not showing much near term strength against all the asset classes.
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