Chart of the Day: 'The Longer the Base...'
Ownership of this Pro Portfolio seems to be moving to the 'strong hands.'
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We like to say, "the longer the base the higher the space," meaning the longer a stock can go sideways and build that base the higher it can go when an uptrend resumes. We see this possibility with United Rentals URI as it continues to carve out a base on moderate turnover.
Investors who prefer to take profit can/will do so, but the hands of ownership seem to be moving to the "strong hands," the big institutional money that is looking to hold the stock for much longer and higher rewards. We can see that in the money flow, which still has an advantage but is just gliding lower. It is not all that bearish.
MACD (moving average convergence/divergence) is sliding lower only due to the lack of momentum, which we see has slowed down in the stochastics (pane 4). Meanwhile, ADX is dribbling lower, hence not much directional movement. We would like to see this stock break higher and start making higher highs, higher lows.
Earnings will be out in about five weeks, which may be the catalyst to push this stock higher. We like United Rentals in TheStreet Pro Portfolio and rate it a One, or "buy at anytime."
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At the time of publication, TheStreet Pro Portfolio was long URI.
