United Air shares fall for a third straight session on Friday, 737 MAX cancellations extended through August 3rd

May 28, 2019 9:27 am

Last week United Continental Holdings Inc (UAL) said that its 14 Boeing 737 MAX planes would be taken off its schedule for one more month, through August 3rd. This will lead to the cancellation of another 1 290 flights, the air carrier warned.

United Air shares closed lower for a third consecutive trading session on NASDAQ on Friday. The stock edged down 0.15% ($0.12) to $80.79, after touching an intraday high at $81.75 and an intraday low at $80.47.

Shares of United Continental Holdings Inc have retreated 3.51% so far in 2019 compared with a 12.73% gain for the benchmark index, S&P 500 (SPX).

In 2018, United Air’s stock went up 24.23%, thus, it outperformed the S&P 500, which registered a 6.24% loss.

United Air is another major air carrier, alongside American and Southwest, to have canceled thousands of flights during the intense summer travel season and to have taken the 737 MAX off its schedules through August. At least 3 300 flights have already been canceled by United Air alone since the 737 MAX global grounding in March.

Meanwhile, United Air Chief Executive Oscar Munoz said last week that he intended to board the first 737 MAX flight once the jet returns to service. The air carrier had also said that passengers, who were not willing to board the 737 MAX jets, would be rebooked.

According to CNN Money, the 18 analysts, offering 12-month forecasts regarding United Air’s stock price, have a median target of $106.00, with a high estimate of $140.00 and a low estimate of $81.00. The median estimate represents a 31.20% upside compared to the closing price of $80.79 on May 24th.

The same media also reported that 11 out of 22 surveyed investment analysts had rated United Air’s stock as “Buy”, while 8 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for United Continental Holdings Inc (UAL) are presented as follows:

Central Pivot Point – $81.31
R1 – $82.84
R2 – $84.90
R3 – $86.43
R4 – $87.97

S1 – $79.25
S2 – $77.72
S3 – $75.66
S4 – $73.61

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