UAL near Resistance

Published on Wednesday, 01 September 2010 04:44 Written by Danny Miller

New York, September 1st (TradersHuddle.com) - Shares of UAL Corporation (NASDAQ:UAUA) are trading very close to calculated resistance at $21.56 with the current price action closing at just $21.20 placing the stock near levels that make it difficult to buy.

UAL Corporation (NASDAQ:UAUA), through its subsidiaries, offers air transportation services. The company, through its subsidiary, United Air Lines, Inc., provides transportation of persons, property, and mail in the United States and internationally. The company is based in Chicago and is member of the Star Alliance.

UAL's current stock range is defined by current calculated support defined at $19.09 and by the resistance level at $21.56, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for UAL, as the stock is well above support, however, as the stock pulls back towards $19.09 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $21.56 then traders will get an opportunity to enter UAL stock by establishing a position as the stock moves to a higher range.