Continental Airlines (CAL) all set for correction in long term

Continental Airlines Inc. (NYSE: CAL) announced its decision on Tuesday to officially join the Star Alliance network. As a result of joining the network, Continental OnePass members will be able to earn and redeem miles on all other Star Alliance member carriers.

Shares of Continental Airlines Inc. (CAL) rose by 3.1% to $12.37 in mid day trading. The CAL stock, however, continues to be in a long term downward trend, and is still searching for its support around $10.1 on a closing basis, from where it started moving upwards in the second half of July this year. The CAL stock makes a case for ‘sell on news’.

The strategic alliance adds Continental's hubs in Newark, Houston and Cleveland to the network.