Stock Ready for Grounding
02/06/2013 7:00 am EST
Ryan Mallory of SharePlanner.com sees a bear flag waving on multiple time frames in this airline’s chart and shares a short trade idea based on that.
Stock: United Continental Holdings (UAL)
Long or Short: Short
United Continental Holdings (UAL) Daily Chart
Reason for Trade: UAL has set up quite nicely to the short side, with the bear flag on multiple time frames as well as the head and shoulders pattern that looks imminent. If this stock plays out the way I think it should, then the stock will be trading at $23.00 in no time.
I traded this stock to the long side prior to the 787 Boeing fiasco that ultimately nullified the trade for us, so I'll be quite thrilled if I'm able to make up for that loss with a solid gain on this trade.
But careful though, this market is showing a lot of volatility suddenly and the potential for rapid whipsaws in this market is escalated. So trade prudently out there.
By Ryan Mallory, Founder, SharePlanner.com