United Airlines Stock Dips 1.56% As Bearish Signals Challenge Key 82.60 Resistance

Candlestick Theory
United Airlines Holdings (UAL) exhibits notable candlestick patterns and key price levels. The recent session (2025-06-05) formed a bearish candle closing at $80.35, down 1.56%, rejecting the $82.58 resistance level. A significant bullish engulfing pattern emerged on 2025-05-27 (4.73% gain), followed by a volatile rally peaking at $86.27 on 2025-03-06. Key support lies at $77.50 (tested on 2025-05-28), while resistance is established near $82.60 (2025-05-13 high). The April 2025 low of $56.15 serves as major structural support. Recent price compression between $79.44 and $81.62 suggests indecision, with a breakdown below $79.50 potentially triggering bearish momentum.
Moving Average Theory
The 50-day moving average (approximately $75.50) remains above the 100-day moving average (~$72.30), signaling intact intermediate-term bullish bias. However, the current price ($80.35) has dipped below both averages, reflecting near-term weakness. The convergence of these moving averages between $72-$76 creates a critical support zone. Failure to hold above the 50-day MA may accelerate selling pressure, while sustained trading above the 100-day MA suggests underlying strength in the longer trend despite recent pullbacks.
MACD & KDJ Indicators
MACD (12,26,9) shows a bearish crossover below the signal line, with histogram bars declining since late May 2025 – indicating weakening upward momentum. KDJ (9,3,3) registers at [K: 42, D: 48, J: 30] as of 2025-06-05, approaching oversold territory but not yet extreme. The J-line dipping below 30 hints at short-term oversold conditions, though the absence of bullish divergence suggests limited reversal impetus. Confluence exists with MACD’s bearish signal, supporting potential continued consolidation near-term.
Bollinger Bands
Bollinger Bands (20-day, 2σ) have contracted significantly since mid-May 2025, with bandwidth narrowing 18% – reflecting subdued volatility. Price currently hovers near the middle band ($78.80), having breached the lower band briefly on 2025-05-23. This compression often precedes directional breakouts; a sustained move below $78 could trigger bearish expansion, while recovery above $81.50 would signal bullish resurgence. Historical band touches (e.g., 2025-04-09) align with volatile price reversals.
Volume-Price Relationship
Recent volume trends raise sustainability concerns for upward moves. The rally to $82.60 on 2025-05-13 saw volume decline 25% versus the preceding up-day, suggesting weak participation. Conversely, the 2025-06-02 advance to $81.23 occurred on 7.48M shares – 48% above average – validating bullish conviction. Current distribution is evidenced by higher volume during down days (e.g., 6.03M shares on 2025-06-05 decline). Breakouts lacking volume confirmation should be viewed skeptically.
Relative Strength Index (RSI)
The 14-day RSI reads 48.6, retreating from near-overbought levels (68.5 on 2025-05-13) but holding above oversold thresholds. While RSI has not breached 30 since April 2025, its failure to reach overbought territory during May rallies signals tepid momentum. This neutral reading aligns with recent sideways action. Traders should note RSI’s tendency to give false signals during strong trends; current absence of bullish divergence tempers reversal expectations.
Fibonacci Retracement
Applying Fibonacci to the dominant swing low ($56.15 on 2025-04-08) and high ($86.27 on 2025-03-06) reveals key retracement levels. The 50% retracement ($71.21) held as support in April-May 2025, while the 38.2% level ($75.10) recently capped rebounds. Current price trades near the 23.6% resistance ($78.70) – a decisive break above this level could target the $82.60 swing high. Confluence exists at $76.00 (38.2% retracement + 100-day MA), making it a critical support for bulls.
Confluence and Divergences
Confluence is observed at $76.00 (Fibonacci 38.2%, 100-day MA, and May swing low), a make-or-break support zone. Bullish divergences are currently absent; MACD and KDJ momentum oscillators align with recent price weakness. However, Bollinger Band contraction and neutral RSI hint at coiled energy. Notably, the 2025-05-29 volume spike (10.1M shares) at support preceded a rally, underscoring volume’s role in validating key levels. A breakdown below $76.00 with expanding volume would confirm bearish control, whereas recovery above $81.50 on strong volume could revive the uptrend.