The stock market does not always act the way you'd expect, Jim Cramer told his Mad Money viewers Thursday night. Friday's market hinged on "NABAF," Cramer's new acronym for "not as bad as feared." The "not as bad as feared" theme played out at United Rentals Inc. (URI) , which Cramer details in his Real Money column here.
Let's check out the charts of this rental company that services customers that includes construction and industrial companies, utilities and even homeowners.
In the daily bar chart of URI, below, we can see that prices have traded sideways the past 12 months. Prices have recently rallied above the rising 200-day moving average line and the bottoming 50-day moving average line.
Despite the sideways price movement the daily On-Balance-Volume (OBV) line has been improving from late August and just moved above the September high. A rising OBV line only happens when buyers of a stock have been more aggressive with trading more shares of stock when the stock closes higher.
The Moving Average Convergence Divergence (MACD) oscillator is crossing above the zero line now for a fresh go long signal.
In the weekly bar chart of URI, below, we can see that prices are moving above the bottoming 40-week moving average line. The weekly OBV line has been steady but also slightly higher than its November low.
The MACD oscillator is just slightly below the zero line so we could soon cross the zero line for a buy signal.
In this Point and Figure chart of URI, below, we can see a potential longer-term price target of $178.
Bottom-line strategy: The charts of URI tell a bullish story. Traders could do some buying at current levels and get more aggressive above $140. The $180 area is our price target. Risk below $119 for now.