United Air shares rebound on Friday, air carrier imposes higher checked bag fees on particular routes

United Continental Holdings Inc announced on Friday that it had raised fees on checked bags on routes to and from North America, Central America and the Caribbean amid higher fuel and other costs.

United Air shares closed higher for the sixth time in the past eight trading sessions in New York on Friday. The stock went up 0.58% ($0.50) to $87.42, after touching an intraday high at $87.67 and also a fresh all-time high.

Shares of United Continental Holdings Inc have risen 29.70% so far in 2018 compared with an 8.52% gain for the underlying index, S&P 500 (SPX).

In 2017, United Air’s stock retreated 7.52%, thus, it underperformed the S&P 500, which registered a 19.42% return.

United Air said its fee on the first checked bags on the abovementioned routes had been raised from $25 to $30.

At the same time, the air carrier’s fee on the second checked bags within the United States, Puerto Rico, Virgin Islands, Central America and the Caribbean has been raised from $35 to $40.

Rising fuel prices as well as raises in salaries and benefits for pilots, mechanics and flight attendants have led to a surge in airlines’ operating expenditures.

According to CNN Money, the 15 analysts, offering 12-month forecasts regarding United Air’s stock price, have a median target of $88.00, with a high estimate of $130.00 and a low estimate of $74.00. The median estimate represents a 0.66% upside compared to the closing price of $87.42 on August 31st.

The same media also reported that 10 out of 18 surveyed investment analysts had rated United Air’s stock as “Hold”, while 7 – as “Buy”.

Daily and Weekly Pivot Levels

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

R1 – $87.51
R2 – $87.60
R3 (Range Resistance – Sell) – $87.70
R4 (Long Breakout) – $87.97
R5 (Breakout Target 1) – $88.29
R6 (Breakout Target 2) – $88.43

S1 – $87.33
S2 – $87.24
S3 (Range Support – Buy) – $87.15
S4 (Short Breakout) – $86.87
S5 (Breakout Target 1) – $86.55
S6 (Breakout Target 2) – $86.41

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 – $86.89
R1 – $88.20
R2 – $88.99
R3 – $90.30
R4 – $91.62

S1 – $86.10
S2 – $84.79
S3 – $84.00
S4 – $83.22