United Airlines Stock Hits Resistance Before Q1 Earnings: Can Analyst Optimism Fuel A Rebound?

United Airlines Holdings Inc UAL will report its first-quarter earnings on Tuesday. Wall Street expects 76 cents in EPS and $13.26 billion in revenues when the company reports after market hours.

The stock is up 60.06% over the past year, down 31.16% year-to-date.

Let’s look at what the charts indicate for UAL stock and how the stock currently maps against Wall Street estimates.

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UAL Stock Chart Bearish Ahead Of Q1 Earnings 

Chart created using Benzinga Pro

UAL stock is showing a technically bearish setup, with the stock trading below its five-day, 20-day and 50-day exponential moving averages — a signal of downward momentum. The Moving Average Convergence Divergence (MACD) reading of a negative 5.62 further confirms this trend, indicating a loss of positive momentum and reinforcing the current bearish sentiment.

Additionally, the Relative Strength Index (RSI) sits at 43.48, hovering above the oversold threshold of 30. This suggests that while the stock isn’t deeply oversold yet, it remains under modest selling pressure.

From a simple moving average standpoint, UAL stock, at $65.69 is below its 20-day SMA of $69.09, 50-day SMA of $84.15 and 200-day SMA of $73.87 — each flashing bearish technical signals. However, the current price is above its 8-day simple moving average of $62.21, hinting at a possible near-term bullish reversal.

For investors, this setup suggests caution in the short term, as longer-term indicators continue to lean bearish, but the short-term bounce could offer opportunities for nimble traders watching for signs of a reversal.

United Airlines’ Analysts See 44% Upside

Ratings & Consensus Estimates: The consensus analyst rating on UAL stock stands at a Buy currently with a price target of $87.65. The three most recent analyst ratings for UAL stock — from Evercore ISI Group, Barclays and Susquehanna — suggest an average price target of $94.67. This implies a 44.16% upside from the current level.

UAL Stock Price Action: UAL stock closed the trading day Monday at $65.59, up 0.14%.

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