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What the Charts Say

Bullish on United Continental Add to ...

United Continental Holdings Inc. had a sharp rise from $3.07 in July 2009 to $29.75 (U.S.) in October 2010 (A-B) and declined to form a bullish “W” formation (C-D-E-F). The recent rise to $27.22 (F) signalled the breakout from this formation and the start of a new up-leg toward higher targets. Only a decline below the 40-week Moving Average (40wMA – currently at around $22) would reverse the current long-term positive status.

Point & Figure measurements provide targets of $29 and $34 (10-per-cent and 29-per-cent appreciation potentials from current levels). The large “W” formation (dotted lines) supports higher targets.

Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.

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