URI breaks back above 20-day moving average
United Rentals Inc. (URI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
URI finished Wednesday at 181.55 gaining $4.99 (2.83%), significantly outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 178.97, the stock confirmed its breakout through the prior session high after trading up to $4.13 above it intraday.
Daily Candlestick Chart (URI as at Sep 16, 2020):
Wednesday's trading range has been $7.67 (4.33%), that's above the last trading month's daily average range of $5.34. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for URI.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 20-day moving average at 177.12 for the first time since September 2nd. Unable to break through the key technical resistance level at 182.79 (R1), United Rentals closed below it after spiking up to 183.10 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. The market found buyers again today around 175.43 for the third trading day in a row after having found demand at 175.27 in the previous session and at 174.91 two days ago. The last time this happened on July 17th, URI actually lost -1.16% on the following trading day.
Although URI is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 186.78, upside momentum might speed up should the stock be able to break out to new highs for the year. As prices are trading close to September's high at 185.29, upside momentum could accelerate should the share mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for United Rentals. Out of 129 times, URI closed higher 55.81% 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 62.79% with an average market move of 2.01%.