Chart of the Day: Concern for United Rentals After All-Time High?
The stock has been a champ and has moved up with the rest of the market, but at all-time highs, it looks a bit tired.
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There's no question that United Rentals URI has been one of our best portfolio names.
When you can identify a trend such as the strong uptrend move from URI, you simply "stand back" and watch. Our patience over the last five months has paid off nicely, and with the stock recently moving into new high territory, there seems to be little to be disappointed about.
Yet, with the markets wobbling here, we should always be concerned about our best names like United Rentals. If the markets start to falter, even this one will get taken down a notch.
No matter, that would likely set up another tremendous buying opportunity, but that is for another day.
The chart is reflecting bullishness with blue candles. The GoNoGo composite of indicators grades this as strongly bullish, but the stock is running into problems at the $920 level. A pullback to the 20-day moving average would be "normal" and keep the uptrend in tact, though a $35 move lower won't feel good.
Momentum is strong but may be rolling over, we'll see if dip buyers step in, while money flow remains robust. There's nothing wrong here other than an overbought condition.
We like United Rentals in TheStreet Pro Portfolio and rate it a two, or stockpile on pullbacks.
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At the time of publication, TheStreet Pro Portfolio was long URI.
