United Continental Holdings Inc : Ascending triangle continuation

07/17/2012 | 09:02am Opinion : Bullish above 23 USD Target price : 35 USD Stop loss: 22.7 USD

NYSE Airlines

United Continental is an airline holding company. The company owns and operates airlines that transports persons, property and mail throughout the United States and abroad.

Next Friday the company will release its results for second quarter. According to Bloomberg, the company will record a revenue growth YoY nearly 2.5%. Moreover, Reuters and Bloomberg forecast earnings per share in a range between $1.66 and $1.69, up about 13%.
The company is trading “only” 6 times its EPS estimates for this year; this value gives a good opportunity for investors interesting in the stock.

Technically the share is in bullish trend in the mid and long term. This trend has been stopped by long term resistance of USD 25, setting up a consolidation phase. In weekly data, it is possible to see a particular technical pattern, known as ascending triangle continuation.

The break out from this triangle could rocket the stock towards USD 35. We suggest a stop loss below support trend line at USD 22.7

Copyright (c) 2013 4-Traders.com

Disclaimer: 4-traders.com is a website published by SURPERFORMANCE SAS. Surperformance or 4-traders.com is not a registered broker-dealer nor a registered investment adviser. You understand that this web site and its content is furnished for your personal, noncommercial, informational purposes only, and that no mention of a particular security in this website constitutes a recommendation to buy, sell, or hold any other security, nor that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Surperformance and 4-traders.com services will not advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. Information regarding trading and investment as provided by Surperformance professional is not tailored to the investment needs of any specific person. You acknowledge that you are responsible for your own financial decisions and should seek a registered financial agent depending on your own risk tolerance to advise you on your personal trading activities.