United Rentals Extends Rally To Five Days With 7.64% Gain As Technicals Signal Bullish Momentum

United Rentals (URI) concluded the latest session at $740.97, rallying 3.41% to extend its winning streak to five consecutive days and delivering a 7.64% gain over this period. This momentum follows a broader trajectory within the given dataset, necessitating multi-faceted technical examination.
Candlestick Theory
Recent price action exhibits a robust bullish sequence, characterized by five consecutive white candles closing near session highs, including a decisive breakout candle on June 17th (open: $685.04, close: $694.99) and a sustained ascent. Key resistance emerges at the June 24th high of $743.72, aligning with the February historical peak zone near $744. Immediate support rests at $716.57 (June 23rd close), backed by a stronger floor at the June 13th swing low of $691.72. The absence of reversal patterns like dojis or engulfing candles in the uptrend suggests persistent buying pressure.
Moving Average Theory
The 50-day moving average (MA) has maintained an upward slope beneath prices since mid-May, confirming a short-term bullish bias. Crucially, the 50-day MA crossed above the 200-day MA in early May, forming a "golden cross" that signals enduring bullish momentum. Current pricing ($740.97) trades decisively above all three MAs (50/100/200-day), with stacked sequencing (50 > 100 > 200) reinforcing a multi-timeframe uptrend. The rising 200-day MA, now near $680, provides a long-term support anchor against pullbacks.
MACD & KDJ Indicators
MACD metrics display a bullish alignment, with the MACD line sustaining above its signal line since early June and both trending upward. This divergence-free configuration supports continuation potential. KDJ oscillators, however, reflect overbought conditions (K and D values exceeding 80 since June 20th), warning of short-term exhaustion risk. While the J-line remains elevated, the lack of bearish divergence alongside strong MACD readings tempers immediate reversal concerns, instead indicating overheated momentum.
Bollinger Bands
Bollinger Bands have expanded materially during the five-day rally, reflecting heightened volatility and directional conviction. Prices have consistently hugged the upper band since June 17th, confirming upside momentum dominance. However, the stretch beyond the upper band implies potential near-term consolidation as volatility normalizes. Prior contraction phases (e.g., mid-May) preceded explosive moves, suggesting the current expansion phase may still harbor follow-through energy before mean reversion.
Volume-Price Relationship
Volume surged 68% to 562,376 shares during the latest rally day (June 24th), validating the breakout with elevated participation. Notably, recent advances consistently occurred on above-average volume (exceeding the 30-day mean), contrasting with lighter volume during minor pullbacks like June 13th. This accumulation pattern signals institutional backing for the uptrend. Volume spikes on key up days (e.g., April 9th, May 12th) historically marked inflection points, reinforcing the current volume-supported breakout’s credibility.
Relative Strength Index (RSI)
The 14-day RSI registers at 76, entering overbought territory (>70) for the first time since early April. While this suggests frothy short-term conditions, the indicator has yet to form bearish divergence against rising prices. Historically, URI has sustained overbought RSI readings for extended periods during strong trends (e.g., late 2024). Thus, while caution is warranted near-term, the absence of divergence implies the uptrend may tolerate elevated RSI before significant correction.
Fibonacci Retracement
Applying Fibonacci levels to the dominant downtrend from November 2024’s high of $875.15 to April 2025’s low of $533.445 reveals critical confluences. The current price ($740.97) hovers near the 61.8% retracement level ($744.62), a historical resistance zone that rejected prices in February. This Fib tier converges with February’s double-top pattern resistance ($744–$756), creating a formidable technical barrier. A decisive close above $745 would signal bullish resolution, while failure here may trigger profit-taking toward the 50% retracement ($704.30).
Confluence and Divergence Observations
Notable confluence exists at the $743–745 resistance nexus, merging Fibonacci, horizontal price, and candlestick barriers—elevating its technical significance. Divergence appears limited, though KDJ’s overbought extremes contrast with MACD’s steady uptrend. Volume and Bollinger Band expansions harmoniously validate price strength, while RSI’s overbought reading remains unchallenged by price weakness. The multi-indicator alignment generally supports bullish continuation, contingent upon $745 resistance clearance.