United Airlines waiting for shorts

United Airlines Holdings, Inc., through its subsidiaries, provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. It transports people and cargo through its mainline and regional fleets. As of February 28, 2020, the company operated approximately 791 mainline aircraft. It also sells fuel; and offers catering, ground handling, and maintenance services for third parties.

UAL stock price chart analysis

United Airlines (NASDAQ: UAL) was once the growth story among legacy carriers. The growth opportunity has now vanished. UAL may appeal to shorter-term traders, given the upside potential that the stock provides. But I am keeping my distance and waiting for a bigger pullback before trading this stock, mostly interested in shorts because there is a clear downtrend on the monthly timeframe together with a super strong monthly supply imbalance around $86. Take a look at United Airlines (NASDAQ: UAL) monthly timeframe supply and demand analysis below.

United Airlines waiting for shorts
United Airlines waiting for shorts

This is a long term analysis for United Airlines (NASDAQ: UAL), if the stock starts correcting it could provide short term buy opportunities on the way up for those trading shorter term. We are expecting a bigger retracement, so longs could be possible soon if it starts breaking higher.

The airline’s traffic and capacity metrics had been increasing back in 2018 about twice as fast as those from Delta and American Airlines. But the bottom has since fallen off. The current year will be nothing like 2019, as airline traffic should drop by a huge percentage in the second quarter. As the global economy approaches a period of deep recession, talking about growth and occupancy improvement has given way to discussions about how airlines will remain solvent in the current environment with COVID-19 coronavirus affecting travellers and countries around the world.

United Airlines price action analysis

This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.

Trading supply and demand imbalances is ideal for beginners and those with a full or half time job, you won’t need to stay in front of the computer all day long trying to move price action with your mind. 

UAL supply and demand imbalances

As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why is it that you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances gaining control.

Unless you are doing very short term trading and scalping, you should not worry about fundamentals or earnings announcements on United Airlines (NASDAQ: UAL).

You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for price to pullback or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.

If you want to learn how to trade using our supply and demand trading strategy, join our supply and demand stock trading course.

There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy a United Airlines (NASDAQ: UAL) CFD (contracts for difference) if you are in a country where it’s allowed.

Alfonso Moreno
Alfonso Moreno
Full time trader, expert technical analyst and founder of Set and Forget supply and demand online trading community. Traveler, photographer and adventurer.

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