Chart of the Day: Can United Rentals Get a Lift?
Resistance is the downtrend line but there is plenty of space for the stock to reach that level.
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As we wait for United Rentals URI to carve out its base, we see some resistance levels that will likely stymie the stock as it moves upward. Notably the strong downtrend line drawn in the top pane has resistance currently at $678, but that is falling each day. Still, that would be a nice gain from current levels.
United has been hit rather hard this month with some heavy selling volume. Yet, we can see the stock hit a panic level around $575. That was a good spot for buyers to come in and support it. It's important to know that.
We have resistance marked by an arrow at the 200-day moving average, around $744, as seen in the top pane. That objective could be achieved after a long basing period. Note though the budding strength in the Moving Average Convergence Divergence and stochastics, as seen in panes two and four, where these indicators are just turning bullish for the first time in months. That's a good sign, but the stock still needs to do more work.
We like United Rentals and rate it a "One" in TheStreet Pro portfolio, buy at anytime.
The Pro Portfolio is long URI.
