United Rentals (URI) : "I think this one is excellent as the economy remains strong," said Jim Cramer during the 'Lightning Round' of Mad Money Tuesday night. Let's check the charts to see if we should invest or just rent.
In this daily bar chart of URI, below, we can see that prices had a sharp decline in the fourth quarter of 2018, falling from around $170 down to $95. URI recovered back to the $140 area but then a sideways pattern has developed between $110 and $140.
Prices are above the 50-day and 200-day moving averages but the slopes of both indicators are negative. We could be making a top reversal today with a close below the low of the day high (you have to look closely).
The daily On-Balance-Volume (OBV) line has been neutral since late October. The Moving Average Convergence Divergence (MACD) oscillator is recently back above the zero line but the two moving averages of the oscillator are right on top of each other.
In this weekly bar chart of URI, below, we can see that prices are above the declining 40-week moving average line.
The weekly OBV line shows a rise in June but overall the pattern is just slightly friendly.
The MACD oscillator on this longer time frame is just back to the zero line for an outright buy signal.
In this Point and Figure chart of URI, below, we can see a possible or potential upside price target of $144 - a minor breakout should it happen. A decline to $128.71 should weaken the chart.
Bottom line strategy: At this juncture it looks like URI has made another price peak and will work lower in the weeks ahead. Another trip down to $110?