CAR closes lower for the 2nd day in a row
Avis Budget Group Inc. (CAR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CAR ended Thursday at 16.42 losing $0.82 (-4.76%), notably underperforming the Dow Comp. (6.26%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CAR as at Mar 26, 2020):
Thursday's trading range has been $2.16 (12.37%), that's below the last trading month's daily average range of $3.16. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for CAR.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 14.17 (S1).
While the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Avis Budget. Out of 302 times, CAR closed higher 51.66% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.96% with an average market move of 1.13%.