URI breaks above 200-day moving average for the first time since March 2nd
United Rentals Inc. (URI) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
URI finished the week 10.11% higher at 130.56 after gaining $2.84 (2.22%) today, notably outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 130.56 marks the highest recorded closing price since March 2nd. Closing above Thursday's high at 129.89, the share confirmed its breakout through the prior session high after trading up to $1.72 above it intraday.
Daily Candlestick Chart (URI as at May 22, 2020):
Friday's trading range has been $5.04 (3.94%), that's below the last trading month's daily average range of $6.37. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for URI. Prices continued to consolidate within a tight trading range between 124.59 and 133.01 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close above the 200-day moving average at 129.90 for the first time since March 2nd. United Rentals found buyers again today around 126.57 for the third trading day in a row after having found demand at 126.25 in the previous session and at 126.05 two days ago. The last time this happened on March 11th, URI actually lost -16.54% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 133.01 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 124.59 where further sell stops could get activated. Trading close to March's high at 138.61 we might see further upside momentum if potential buy stops at the level get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for United Rentals. Out of 304 times, URI closed higher 51.64% 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 63.82% with an average market move of 2.05%.