Swing Trade Idea (UAL) – January 26, 2023
Our bearish trade for Thursday, January 26th is United Airlines Holdings Inc. (UAL). UAL is part of the Industrial Sector, which has performed at 2.41% over the last month, with UAL overperforming relative to its sector at 31.35% over the same period.
UAL made several failed attempts during 2022 to break above a key level of $50, and is again finding resistance at this level. As this is a counter-trend trade, we believe that UAL will retrace lower as it has reached a point of exhaustion after a strong January rally.
As a close, if UAL were to trade above $52 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We also will consider cutting losses on this options trade if the value of the vertical spread moves below $0.75.
