Above Resistance - UAL

Published on Thursday, 02 September 2010 05:12 Written by TradersHuddle Staff

New York, September 2nd (TradersHuddle.com) - Shares of UAL Corporation (NASDAQ:UAUA) closed the trading session at $21.93 just above calculated resistance at $21.56 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

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 stock was trading in a well defined range with support at $19.09 and resistance at $21.56, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that UAL's stock is still near the broken resistance level, traders will be focusing on $21.56 to see if the stock holds the breakout without rolling over.