United Airlines Holdings, Inc. 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.
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 of around $86. See the United Airlines (NASDAQ: UAL) monthly timeframe supply and demand analysis below.
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 that trading shorter term. We expect a bigger retracement, so longs could be possible soon if it starts to break higher.
The airline’s traffic and capacity metrics had been increasing 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 significantly 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 the COVID-19 coronavirus affecting travellers and countries worldwide.
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 full or half-time jobs. You won’t need to stay in front of the computer all day long trying to move price action with your mind.
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 do 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 in 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 the 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.
Join our supply and demand stock trading course if you want to learn how to trade using our supply and demand trading strategy.
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.
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