URI finds buyers at key support level
United Rentals Inc. (URI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
URI finished the week 4.75% higher at 156.86 after losing $3.22 (-2.01%) today on low volume, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 157.00, the stock confirmed its breakout through the previous session low after trading up to $2.10 below it intraday.
Daily Candlestick Chart (URI as at Feb 14, 2020):
Friday's trading range has been $6.21 (3.88%), that's above the last trading month's daily average range of $4.69. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for URI.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on January 24th, URI lost -3.55% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 154.90 earlier during the day, United Rentals bounced off the key technical support level at 154.96 (S1). The failure to close below the support could increase that levels significance as support going forward. The share closed back below the 50-day moving average at 157.93.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for United Rentals. Out of 413 times, URI closed higher 58.84% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.53% with an average market move of 1.84%.