U Rallies Nearly 6%, Bulls Test Key Resistance

$Unity Software Inc.(U)$

U Surged +5.89%: Bulls Challenge Resistance, $47.29 Signals Rebound

Latest Close Data

Closed at $47.29 on Jan 13, 2026, up +5.89% ($2.63). This brings the stock within ~9.3% of its 52-week high of $52.15.

Core Market Drivers

A strong rebound was fueled by broad-based buying across small, medium, and large order flows, indicating broad investor interest.

The stock's high volatility (~8% intraday amplitude) and elevated volume (Volume Ratio: 1.81) suggest significant trading activity and potential short covering.

Technical Analysis

The RSI(6) at 70.4 indicates strong short-term momentum, nearing overbought territory.

However, the MACD histogram at -0.19 shows the bullish momentum is still developing, as the DIF line (0.59) remains below the DEA line (0.69). High volume confirms the strength of the move.

Key Price Levels

Primary Support: $45.18 (Recent swing low).
Strong Resistance: $49.18 (Key technical barrier from Jan 12).
Immediate Pivot: $47.29 (Today's close, acting as the new base).

Valuation Perspective

The stock trades at a TTM P/S of 11.22x and a negative P/E (-45.03), reflecting its current unprofitability.

The Forward P/E of -70.75 is significantly below its historical average of 1.37, indicating deep value concerns but also potential for a sharp rebound if profitability improves.

Analyst Targets

23 analysts have an average price target of $46.96, slightly below the current price. Sentiment is bullish with 6 Strong Buy, 12 Buy, 10 Hold, and 1 Underperform ratings.

Weekly Outlook

Expect consolidation between $45.18 and $49.18. A decisive break above $49.18 could target the $52-$54 range (52-week high). A fall below $45.18 may see a retest of the $42-$43 support zone.

Risk Disclaimer

This analysis is for informational purposes only and not financial advice. Past performance does not guarantee future results. Investing involves risk, including potential loss of principal. Conduct your own research before making any investment decisions.

For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.

🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now

Find out more here.

Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.
Click to access the activity

Other helpful links:

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.