CAR pops to highest close since April 29th
Avis Budget Group Inc. (CAR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CAR finished the week 40.74% higher at 16.72 after edging higher $0.16 (0.97%) today, outperforming the Dow Comp. (0.26%) ahead of tomorrow's Memorial Day market holiday. Today's close at 16.72 marks the highest recorded closing price since April 29th. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CAR as at May 22, 2020):
Friday's trading range has been $1.73 (10.14%), that's slightly below the last trading month's daily average range of $1.75. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CAR.
Two candlestick patterns are matching today's price action, the Tweezer Top which is known as bullish pattern and one bearish pattern, the Hanging Man.
After having been unable to move lower than 15.76 in the prior session, the share found buyers again around the same price level today at 15.52. The last time this happened on May 7th, CAR gained 12.95% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying could move prices higher should the market test April's close-by high at 18.65.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Top" stand out. Its common bullish interpretation has been confirmed for Avis Budget. Out of 9 times, CAR closed higher 55.56% 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 three trading days, showing a win rate of 66.67% with an average market move of 1.10%.