United Airlines Holdings Inc (NASDAQ:UAL) stock is in the green, rallying on strong chart signals ahead of its second quarter earnings report after market close Wednesday.
Bullish Technicals Set The Stage For A Breakout
Chart created using Benzinga Pro
Shares are trading around $87.41, comfortably above their eight-, 20-, 50-, and 200-day simple moving averages, a classic bullish indicator that suggests the trend is favorable, despite selling pressure indicating caution ahead.
The Relative Strength Index (RSI) is at 59.90, indicating that the stock has momentum without being overbought. At the same time, the Moving Average Convergence Divergence (MACD) stands at 2.65, confirming strengthening momentum and reinforcing bullish sentiment.
Earnings Expectations Soar, But Headwinds Remain
All eyes are now on United’s after-market release, with Wall Street forecasting earnings per share of approximately $3.77 on revenues of nearly $15.35 billion, according to Benzinga Pro data. The travel industry just got a boost after Delta Airlines Inc. (NYSE:DAL) reported a strong quarter – its positive outlook and easing fuel costs triggered a sector-wide rally, lifting the stock by more than 14%.
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If United can echo Delta’s performance with solid guidance and cost control, the market rally could gain altitude. However, dark clouds such as labor expenses, aircraft delivery delays, or weaker-than-expected booking demand could quickly ground the stock.
Longer-term, UAL remains down ~8% year-to-date, but still up 86% over the past year—a ride suggesting investors believe in the recovery story, even if the upcoming earnings report marks a turning point.
Whether the post-earnings reaction has lift-off or turbulence will depend on United’s ability to match or exceed expectations and whether it can maintain control of costs and outlook.
With bullish technicals in place, the second quarter reveal could be the spark that sends United Airlines to a new cruising altitude, or expose cracks beneath the runway.
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