CAR closes above its opening price after recovering from early selling pressure
Avis Budget Group Inc. (CAR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CAR finished the month 6.32% higher at 22.89 after edging higher $0.18 (0.79%) today on low volume, slightly underperforming the Dow Comp. (0.88%). Trading up to $0.69 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CAR as at Jun 30, 2020):
Tuesday's trading range has been $1.43 (6.29%), that's far below the last trading month's daily average range of $2.73. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CAR.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on May 7th, CAR gained 12.95% on the following trading day.
Prices are trading close to the key technical support level at 21.60 (S1).
Avis Budget shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Avis Budget. Out of 318 times, CAR closed higher 59.75% 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 54.40% with an average market move of 1.04%.