United Rentals Inc. (URI) was reviewed back in April. Prices skidded lower in the second half of April and continued to make lower highs over the summer. Prices have found some buying interest in the $150-$140 area but that may not be enough to generate a rally. Let's rent a few charts and indicators to analyze.
In this daily bar chart of URI, below, we can see that prices have been trending lower since March. URI is below the cresting 200-day moving average line and below the declining 50-day moving average line. The daily On-Balance-Volume (OBV) line has been neutral since March despite the price erosion. Prices have either "fallen of their own weight" or longs have not liquidated positions. The Moving Average Convergence Divergence (MACD) oscillator gave a cover shorts buy signal in early July but this indicator is still below the zero line and a buy signal.
In this weekly bar chart of URI, below, we can see that prices have been below the flattening 40-week moving average line for several weeks. The weekly OBV line is still in a decline and the weekly MACD is sinking further below the zero line in bearish territory.
In this Point and Figure chart of URI, below, we can see the downtrend. A bearish price target and new low of $137.13 is indicated.
Bottom line strategy: Our technical indicators suggest that further declines are possible for URI. Avoid the long side.