Chart of the Day: United Rentals 'Moving' in the Wrong Direction
A pullback though to support may justify adding some shares here.
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United Rentals URI has had a rough go of it for the past few weeks. Notice the head-and-shoulders pattern that was created (top pane) that gave way when the neckline was broken last week.
Though the pattern does find lower prices when the neckline is penetrated, we don't see too much more down here to go, and likely the 200 day moving average at $726 is a place for URI to reverse and move higher. Below there is the September low at $689, that would not be a good sign for the bulls if that level fails to hold.
The indicators are bearish and the MACD is on a sell signal while the momentum is pointing down, a sign of being oversold but not yet on the buying radar screen. Money flow is bearish, too.
We like United Rentals but would like to see the stock settle down and move sideways first before looking to add more shares, if we choose. We rate URI a two in TheStreet Pro portfolio, stockpile on pullbacks.
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At the time of publication, TheStreet Pro Portfolio was long URI.
