United Continental Had a Bearish Engulfing Candle

Published on Thursday, 23 June 2011 04:18 Written by TradersHuddle Staff

New York, June 23rd (TradersHuddle.com) - Shares of United Continental Holdings, Inc. (NYSE:UAL) ended the trading session lower by $0.54 or -2.2% from its previous close. United Continental's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

United Continental Holdings, Inc. (NYSE:UAL) is the owner of Continental Airlines and United Air Lines. United?s and Continental?s operations consist primarily of the transportation of persons, property and mail throughout the United States and abroad. United and Continental are international carriers based in the United States. United, including regional flights operated on United?s behalf, operates approximately 3,400 flights a day. The airline has hubs in Los Angeles, San Francisco, Denver, Chicago, Washington, D.C. and Tokyo. Continental, together with its wholly owned subsidiary, Continental Micronesia, Inc., and including regional flights operated on Continental?s behalf has more than 2,200 daily departures. The airline has major hubs in Newark, Houston, and Cleveland. When both airlines combine, United Continental will likely become the world's largest ariline.

United Continental's current stock range is defined by calculated support defined at $21.69 and by the resistance level at $24.88, which should be used by traders planning their trades.

Traders wanting to establish a position in United Continental stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current United Continental shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: