United Airlines Stock Plunges 5.5% Extending 3-Day Loss to 6.7% Amid Technical Breakdown

United Airlines Holdings (UAL) declined 5.49% in the most recent session, extending its losing streak to three consecutive days with a cumulative drop of 6.65%. This selling pressure culminated in a close at $78.63 after trading between $77.72 and $83.87, accompanied by elevated volume of 8.29 million shares. This sharp retreat prompts a multi-dimensional technical assessment.
Candlestick Theory
The recent three-day pattern forms a bearish reversal sequence. The June 9th session printed a small-bodied candle with wicks ($83.43–$85.80), signaling indecision after the June 6th 4.83% rally. This was followed by two consecutive down days with progressively larger real bodies, culminating in the June 11th long red candle that engulfed the prior two sessions’ range. This development suggests strong selling pressure near the $85 psychological resistance, establishing it as a technical ceiling. Immediate support rests at $77.72 (the June 11th low), with a critical floor at $72.02 (May low).
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages reveal bearish alignment. The 50-day MA ($78.80) recently crossed below the 100-day MA ($81.10), while both remain beneath the 200-day MA ($83.75). The June 11th close ($78.63) sits below all three key averages, confirming sustained downward momentum. This configuration implies multi-tiered resistance between $78.80 and $83.75, with failure to reclaim the 50-day MA potentially accelerating selling pressure.
MACD & KDJ Indicators
The MACD histogram has shown persistent negative values since mid-May, with both the MACD line and signal line in bearish territory. Concurrently, the KDJ oscillator (current readings: K=18, D=22, J=10) entered oversold territory this week. While the KDJ suggests potential for a technical bounce due to oversold conditions, the MACD’s entrenched bearish momentum warrants caution. This divergence implies that any rebound may face resistance near moving average convergences.
Bollinger Bands
Volatility expanded significantly during the June 11th selloff as price broke below the lower Bollinger Band ($80.20) on a 20-day basis. The bandwidth had contracted in the preceding week, indicating a coiled volatility spring that resolved downward. Closing below the lower band often precedes short-term mean reversion, but the breach confirms intensified bearish momentum. Sustained trading below $80 would signal continuation of the downtrend.
Volume-Price Relationship
Volume patterns validate bearish momentum. The three-day decline occurred on escalating volume (6.96M→4.80M→8.29M shares), confirming distribution. Notably, the June 11th volume exceeded the 20-day average by 42%. This contrasts with the June 6th rally volume (5.84M shares), which failed to surpass the prior month’s peak volumes, indicating weak commitment to upside moves.
Relative Strength Index (RSI)
The 14-day RSI now reads 28.6, entering oversold territory after hovering near neutral (45-55) through May. Historically, RSI levels below 30 have preceded short-term bounces in UAL, but oversold conditions can persist during strong downtrends. The current reading may suggest weakening downward momentum, though confirmation from other indicators remains essential before anticipating reversal potential.
Fibonacci Retracement
Applying Fibonacci levels to the swing low of $37.02 (August 5, 2024) and high of $116 (January 22, 2025), key retracement supports emerge. The 50% level ($76.51) coincides with the May trough ($72.02) – a critical support zone. The 61.8% level ($68.64) aligns with the April consolidation range. The recent breakdown below the 38.2% level ($82.78) converted it to resistance, which now converges with the 200-day MA ($83.75), creating a significant technical barrier.
Confluence and Divergence Observations
Confluence of bearish signals appears at the $82–$86 resistance zone, combining the 200-day MA, Fibonacci 38.2% level, and recent price rejection. Support confluence exists near $76–$77, merging the Fibonacci 50% level and volume profile support. Notable divergence emerges between the deeply oversold KDJ/RSI readings and the bearish MACD/moving average alignment, suggesting conflicting short-term and intermediate-term signals. This may indicate potential for technical consolidation before the next directional move, though the weight of evidence currently favors the established downtrend pending bullish catalyst.