URI closes above its opening price after recovering from early selling pressure
United Rentals Inc. (URI) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, URI ended Thursday at 99.18 gaining $5.99 (6.43%), slightly outperforming the S&P 500 (6.24%). Trading up to $4.84 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (URI as at Mar 26, 2020):
Thursday's trading range has been $10.97 (11.53%), that's slightly above the last trading month's daily average range of $10.90. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for URI.
United Rentals managed to close above the 20-day moving average at 98.74 for the first time since February 21st. When this moving average was crossed above the last time on February 11th, URI gained 3.13% on the following trading day. After having been unable to move above 101.18 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 101.26.
Although the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for United Rentals. Out of 238 times, URI closed higher 55.88% 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 62.18% with an average market move of 1.05%.