Chart of the Day: Can This Holding Move Above Resistance?
The stock is currently straddling the 100-day moving average as investors await the direction.
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We like this recent move up by TheStreet Pro holding United Rentals URI after a dip in December took the stock down into correction territory. But catching support at the lows from August was enough to get the bulls off the sidelines and start buying the stock. The indicators are flashing bullish too, with the MACD (moving average convergence/divergence) on a buy signal from earlier this month, and stochastics pushing higher, which shows good momentum in the name.
The bad news, though, seems to be resistance from previous highs (drawn in) that comes up around $815 level and dipping each day. The stock is not far away from this level and if challenged, could present some problems (sellers coming out).
The candles in the top pane are amber, which is neutral on the GoNoGo composite of indicators but is an upgrade from the bearish (pink/purple) profile from earlier in the month. Money flow is strong and continues to show us big institutions are adding URI.
Earnings next week will be interesting. We often see a big move after the release, and this time should be no different.
We like rate United Rentals a One in TheStreet Pro Portfolio, or "buy at anytime."
At the time of publication, TheStreet Pro Portfolio was long URI.
