• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

Time to Make a 'U' Turn If You're Headed Toward Unity Software

This tech name is heading lower as a bounce fizzles and fails.
By BRUCE KAMICH
Mar 04, 2022 | 02:56 PM EST
Stocks quotes in this article: U

We reviewed the chart of Unity Software (U)  on Feb. 2 and wrote that "Shares of U could stage a rebound into the $130-$140 area in the next few weeks, but I do not feel all that comfortable in recommending a trade as other bounce candidates are more appealing."

In this daily bar chart of U, below, we can see that prices rebounded to $120 and stopped short of our anticipated target in the $130-$140 area.

Let's check on the charts of U again as they are poised to make a new low close for the move down today.
 
In this daily bar chart of U, below, we can see that prices are below the declining 50-day moving average line and below the rising 200-day line. A bearish dead or death cross of these two averages can be seen in mid-February. Trading volume has been heavy the past four months. The On-Balance-Volume (OBV) line has only made a modest decline. The 12-day price momentum study shows higher lows from December telling us that the pace of the decline has been slowing. This is a bullish divergence when compared to the price action.
 
 
 
 In this weekly Japanese candlestick chart of U, below, we see a mostly bearish picture. Lower shadows near $90 tell us that traders are rejecting the area but we are likely to close below $90 this Friday and that would refresh the downtrend. The weekly OBV line is flat after a decline. The MACD oscillator is bearish.
 
 
In this daily Point and Figure chart of U, below, we can see a potential downside price target in the $65 area.
 
 
 
Bottom line strategy: Avoid the long side of U as the charts are still pointed lower.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Technical Analysis | Software & Services

More from Investing

Hot for AI Stocks? Try This Intelligent Approach to Artificial Intelligence

Bob Byrne
Feb 7, 2023 8:30 AM EST

Rather than get burned by issues with suddenly inflated prices that eventually could crash back to earth, go with tried-and true-names in technology development.

Can Pfizer's Charts and Fundamentals Get on the Same Page?

Bruce Kamich
Feb 7, 2023 8:15 AM EST

The pharmaceutical giant gained an analyst's buy recommendation but its technical signals are lackluster at best.

Skyworks Solutions Is Improving but Doesn't Appear to Be Heading Skyward

Bruce Kamich
Feb 7, 2023 7:50 AM EST

The charts indicate that the shares of the semiconductor maker are likely to trade sideways for a while even as it gains an analyst's buy recommendation.

This Stock Deserves More Than Window-Shopping

Paul Price
Feb 7, 2023 7:00 AM EST

Macerich is a blast from the past that still looks good today.

Calm, Collected Change in Sentiment

Helene Meisler
Feb 7, 2023 6:00 AM EST

We're not yet seeing much panic or selling, but did you see that rally in the buck? Let's break it down.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:22 AM EST REAL MONEY

    LIVE EVENT: Bruce Kamich and Todd Campbell Share Their Stock Market Insights

    This Monday, Feb. 6 at 12 p.m., our very own exper...
  • 02:58 PM EST REAL MONEY

    Sarge Guilfoyle Breaks Down the Jobs Report, Fed Policy and Stocks!

    Watch it here!
  • 11:35 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Trading an Irrational Market
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login