United Air shares retreat the most in two weeks on Tuesday, a $435 000 fine proposed by the US FAA in regard to flights in 2014

On May 30th the US Federal Aviation Administration (FAA) said that a $435 000 fine could be imposed on United Continental Holdings Inc (UAL) in regard to 23 flights in 2014, which were operated by using a Boeing 787 jet in allegedly inappropriate technical condition.

United Air shares registered their largest daily loss since May 17th during the trading session on Tuesday. The stock went down 2.46% ($2.00) to $79.25, with the intraday high and the intraday low being at $80.95 and $79.01 respectively. In the week ended on May 28th the shares of the transportation company added 4.19% to their market value compared to a week ago, which marked a sixth consecutive period of gains. However, the stock has pared its advance to 12.88% so far during the current month, following a 0.61% drop in April. The latter has been a second straight month of decline. For the entire past year, United Air shares gained 27.19%.

According to the Federal Aviation Administration, in June 2014, a fuel pump pressure switch was replaced by United Air mechanics on a Boeing 787, but however, a mandatory inspection was not performed before the jet was put back into service.

“The safety of our customers and employees is our top priority. We immediately took action after identifying the issue and are working closely with the FAA in their review”, a spokesperson for United Air said in a reference to the situation, cited by Reuters.

According to CNN Money, the 17 analysts, offering 12-month forecasts regarding United Air’s stock price, have a median target of $82.00, with a high estimate of $125.00 and a low estimate of $75.00. The median estimate is a 3.47% surge compared to the closing price of $79.25 on May 30th.

The same media also reported that 9 out of 18 surveyed investment analysts had rated United Air’ stock as “Buy”, while 8 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the United Air stock are presented as follows:

R1 – $79.43
R2 – $79.61
R3 (Range Resistance – Sell) – $79.78
R4 (Long Breakout) – $80.32
R5 (Breakout Target 1) – $80.94
R6 (Breakout Target 2) – $81.20

S1 – $79.04
S2 – $78.89
S3 (Range Support – Buy) – $78.72
S4 (Short Breakout) – $78.18
S5 (Breakout Target 1) – $77.56
S6 (Breakout Target 2) – $77.30

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 – $80.53
R1 – $82.68
R2 – $84.12
R3 – $86.27
R4 – $88.43

S1 – $79.09
S2 – $76.94
S3 – $75.50
S4 – $74.07