URI breaks below 20-day moving average for the first time since July 10th
United Rentals Inc. (URI) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, URI finished the month 4.25% higher at 155.37 after edging lower $1.54 (-0.98%) today, significantly underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (URI as at Jul 31, 2020):
Friday's trading range has been $5.94 (3.78%), that's above the last trading month's daily average range of $4.94. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for URI.
One bullish candlestick pattern matches today's price action, the Hammer. The last time a Hammer showed up on March 18th, URI gained 11.67% on the following trading day.
The share closed below the 20-day moving average at 156.41 for the first time since July 10th.
While the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for United Rentals. Out of 291 times, URI closed higher 52.23% 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 62.20% with an average market move of 1.98%.