Bearish signal on United Airlines as it hits downward sloped trend line
United Airlines (Nasdaq: UAL) has been trending lower since the beginning of December and is one of the few stocks that hasn’t really gained much ground in 2019. As of April 9, the stock is only up 0.62% while the S&P is up 14.81% on a year to date basis.
There is a downward sloped trend line connecting the high from December with the high from February, and the stock just hit the trend line last week. This trend line is also in close proximity to the 50-day moving average.
The stock has rallied over the last few weeks in order to reach the trend line, but the rally has caused the stock to jump from oversold to overbought based on the daily stochastic readings. The indicators did make a bearish crossover on April 9.
The Tickeron AI Trend Prediction tool generated a bearish signal for United on April 8 with a confidence level of 67%. The signal calls for a decline of at least 4% over the next month and 69% of previous predictions on the stock have been successful.
United is expected to release earnings after the closing bell on April 16 with a conference call scheduled for the following morning. Over the last three years the company has seen earnings decline by an average of 5% per year while sales have only increased by 3% per year over the same period. The company did see year over year earnings increase by 67% in the most recent earnings report.
Momentum Indicator for UAL turns positive, indicating new upward trend
UAL saw its Momentum Indicator move above the 0 level on June 27, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 85 similar instances where the indicator turned positive. In of the 85 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for UAL just turned positive on July 01, 2025. Looking at past instances where UAL's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
UAL moved above its 50-day moving average on June 23, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where UAL advanced for three days, in of 308 cases, the price rose further within the following month. The odds of a continued upward trend are .
UAL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 234 cases where UAL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where UAL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. UAL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.132) is normal, around the industry mean (2.846). P/E Ratio (7.494) is within average values for comparable stocks, (24.138). UAL's Projected Growth (PEG Ratio) (5.804) is slightly higher than the industry average of (2.162). UAL has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.035). P/S Ratio (0.477) is also within normal values, averaging (0.623).
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General Information
a holding company with interest in transporting people and cargo through mainline operations, which utilize full-sized jet aircraft
Industry Airlines
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