URI slides to lowest close since September 27, 2017
United Rentals Inc. (URI) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 7th day in a row, URI ended the week -13.4% lower at 137.88 after losing $1.96 (-1.4%) today on high volume, significantly underperforming the S&P 500 (1.42%). Today's close at 137.88 marks the lowest recorded closing price since September 27, 2017. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 139.65, United Rentals confirmed its breakout through the prior session low after trading up to $3.97 below it intraday.
Daily Candlestick Chart (URI as at Oct 12, 2018):
Friday's trading range has been $9.13 (6.3%), that's far above the last trading month's daily average range of $4.90. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for URI.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Last Engulfing Bottom Pattern showed up on April 30th, URI actually lost -0.91% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 161.07.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. Its common bearish interpretation has been confirmed for United Rentals. Out of 34 times, URI closed lower 67.65% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after two trading days, showing a win rate of 64.71% with an average market move of -1.73%.