United Rentals Rises 3.24% On Technical Rebound With Strong Volume Support

United Rentals (URI) has demonstrated a notable recovery over the past two sessions, rising 1.54% to close at $803.25 and extending its gains to 3.24% during this period. This upward momentum follows a volatile sequence of trading days, warranting a multi-dimensional technical assessment to evaluate potential trend sustainability and key price levels.
Candlestick Theory
Recent price action reveals constructive signals. The sharp decline to $778.02 on 07/21 formed a hammer candlestick near critical support at $777.45, which preceded the current two-day rebound. This pattern suggests buyer conviction at lower levels. Immediate resistance is evident at the $815–$821.91 zone (07/18 and 07/21 highs), while robust support holds near $777-$782 (07/21 low and prior consolidation area). A decisive break above $815 would signal bullish continuation.
Moving Average Theory
The moving average configuration maintains a bullish bias. The current price trades above the key 50-day ($767), 100-day ($735), and 200-day ($693) averages, confirming a long-term uptrend. Notably, the 50-day MA remains above the 100-day MA, reinforcing positive intermediate momentum. The $785 level (convergence of 50-day and recent swing lows) offers dynamic support. Sustained trading above these averages favors continued upward trajectory.
MACD & KDJ Indicators
The MACD histogram is ascending above its signal line, indicating strengthening bullish momentum. Concurrently, the KDJ indicator shows the K-line (67) crossing above the D-line (62) from oversold territory (<30 on 07/21), supporting a short-term recovery thesis. However, the K-line approaching 70 warrants monitoring for potential overbought pressures in coming sessions. No significant bearish divergence is currently observed.
Bollinger Bands
Expanding bands highlight rising volatility during the recent rebound. Price currently tests the upper band ($810), which can act as tactical resistance. The breach of the midline ($788) on 07/22 confirmed bullish pressure. A sustained move above the upper band would denote exceptional strength, while a retreat toward the midline could offer a pullback entry opportunity if volume supports.
Volume-Price Relationship
Volume validation lends credibility to the rebound. The 3.24% two-day advance occurred on elevated volume (726k and 839k shares vs. 30-day avg ~650k), confirming buyer participation. The preceding decline on 07/21 saw lower volume than the subsequent up days, suggesting lackluster conviction behind the sell-off. Continued volume expansion on advances would reinforce sustainability.
Relative Strength Index (RSI)
RSI (14-period) has rebounded from oversold levels, now at approximately 58. This neutral positioning allows room for further upside before nearing overbought territory (>70). The absence of bearish divergence during the July pullback diminishes reversal risks near-term, though RSI’s warning nature necessitates vigilance if it rapidly approaches 70 without corresponding price strength.
Fibonacci Retracement
Applying Fibonacci levels to the rally from the 04/21 low ($570.60) to the 07/18 high ($821.91), the recent pullback bottomed at $777.02—aligning precisely with the 38.2% retracement ($777). This confluence with horizontal support validates the importance of this level. The 23.6% retracement ($793) now acts as support, while overcoming the swing high ($815) opens a path to 127.2% extension at $852. The 50% level ($696) remains a longer-term support anchor.
Concluding Synthesis
Confluences strongly favor a cautiously bullish near-term outlook for United Rentals. Multiple technical pillars align: Price sustains above key moving averages, defended the 38.2% Fibonacci level, generated bullish candlestick reversal patterns, and saw volume-confirmed recovery. Momentum oscillators (MACD/KDJ) support continuation. Key watchpoints include:
1. Clearance of $815 resistance (validating continuation)
2. Continued volume backing on new highs
3. RSI behavior near 70 (overbought caution)
A breakdown below $777 support would invalidate the short-term recovery thesis. Given the confluence signals and recent volume-fueled rebound, however, the technical structure suggests higher prices remain the probabilistic path absent new bearish catalysts.