United Airlines Leads Five Stocks Breaking Resistance As Market Rebounds

Your stocks to watch for the week ahead are United Airlines (UAL), Regeneron Pharmaceuticals (REGN), Albemarle (ALB), Cabot (CBT) and Ashland Global Holdings (ASH).

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Most of those stocks, in one way or another, are breaking key resistance levels.

ALB stock is on IBD Leaderboard. CBT stock is on the Leaderboard watchlist. REGN stock is on the IBD 50 list.

United Airlines Stock

United Airlines stock was up 5.1% to 48.41 in the stock market on Friday, closing with an 11.2% weekly gain. UAL stock rebounded above its 50-day and 200-day lines, and had snapped a broader downtrend that began last month.

Investors could have bought UAL stock as an aggressive entry on Thursday or even Friday morning, but is starting to look extended from the 50-day and 200-day lines.

The stock could form a new base after another week. Investors also could view the consolidation since late April as a handle on a consolidation going all the way back to March 2021. Either way, that would offer a 53.22 buy point. UAL stock has been meeting resistance at around 53.

United Airlines stock has a 67 Composite Rating. Its EPS Rating is 51. It has the lowest Composite Rating of the stocks to watch mentioned here. UAL stock is definitely a recovery play.

Even amid signs that higher prices are forcing more customers to limit their spending to essentials, the airline industry has reported strong pent-up demand for travel.

United this month issued a more upbeat second-quarter unit revenue forecast, when compared with 2019 levels, saying “the demand environment has continued to improve.” JetBlue (JBLU) and Southwest (LUV) this week also said they were more upbeat on second-quarter financials.

However, Delta said it would cut flights this summer in an effort to get a better handle on a variety of issues surrounding staffing and service. And airlines are dealing with rising fuel costs as Russia’s war in Ukraine continues.

Regeneron Stock

Regeneron stock was in a cup base with a 747.52 buy point. Shares climbed 1.4% to 692.80 on Friday, up 4.8% for the week. REGN stock could be starting to form a handle. The stock is just above its 50-day line after reclaiming that key level last week

Shares of the biotech have a 94 Composite Rating, similar to most of the other stocks to watch here. Their EPS Rating is 97.

The relative strength line for REGN stock is at record highs. The RS line, the blue line in the charts provided, track a stock’s performance vs. the S&P 500 index.

The company this month reported first-quarter earnings that beat expectations. U.S. sales of its eye-disease treatment Eylea made a double-digit gain, but came up shy of forecasts.

Regeneron earnings are expected to tumble this year as Covid antiviral revenue withers. But EPS should still be well above pre-2021 levels.

Ashland Stock

Ashland stock surged 8.9% to 108.84 last week, breaking a downward trendline that began last month. That break made the ASH stock actionable, but now appears somewhat extended from that early entry. Shares are in a flat base with a 111.15 buy point. The flat base goes back to April 20, but Ashland stock has been consolidating since late November.

Shares have a 97 Composite Rating and a 94 EPS Rating. The stock’s relative strength line is at its highest level since 2019.

Ashland is a supplier of additives, coatings and special ingredients. Those include things like tablet coatings and thickeners for pharmaceuticals, skin care ingredients and polymers for cleaning products.

The company, a recent Stock Of The Day, on Wednesday announced a dividend hike and a new buyback program.

Albemarle Stock

Albemarle stock rose 6.2% to 270.92 on Friday, capping a 14.6% weekly spike. After hitting resistance around 248 through much of this year, ALB stock jumped 7.4% on Thursday, offering a solid buying opportunity. But it’s definitely extended from that now.

ALB stock is in a deep cup base with a 291.58 buy point. Ideally, shares would form a handle before moving to a new high. The RS line for Albemarle is at all-time levels.

The major lithium producer last week raised its full-year profit and sales forecasts, following “the completion of additional lithium contract renegotiations.”

That forecast arrived on top of another hike to its profit and sales outlook earlier in the month, when Albemarle reported first-quarter results.

In February, Albemarle said only 40% of its supply was fixed, based on contracts struck before lithium prices rocketed higher last year on electric-vehicle demand and supply constraints.

Albemarle has a 94 Composite Rating. Its EPS Rating is 71.

Cabot Stock

Cabot stock rose 6.6% to 77.14 on Friday, clearing a handle entry of 72.80. CBT stock is now slightly extended from the buy zone, which runs to 76.44.

Among other products, the specialty-chemicals company makes substances that reinforce tires, as well as materials used in plastics, inks and EV batteries.

Shares have a 95 Composite Rating and a 69 EPS Rating.

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