HLT finds buyers at key support level
Hilton Worldwide Holdings Inc. (HLT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, HLT finished Thursday at 73.20 edging higher $0.95 (1.31%), notably underperforming the S&P 500 (6.24%). Trading $3.16 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on February 24th, HLT lost -4.94% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (HLT as at Mar 26, 2020):
Thursday's trading range has been $8.52 (11.27%), that's slightly above the last trading month's daily average range of $8.00. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for HLT. Prices continued to consolidate within a tight trading range between 67.35 and 78.76 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 70.24 earlier during the day, the market bounced off the key technical support level at 71.48 (S1). The failure to close below the support could increase that levels importance as support going forward. After spiking up to 78.76 during the day, the share found resistance at the 20-day moving average at 78.46.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 67.35 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Hilton Worldwide. Out of 21 times, HLT closed lower 71.43% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after seven trading days, showing a win rate of 61.90% with an average market move of -0.43%.