HLT climbs to highest close since April 29th
Hilton Worldwide Holdings Inc. (HLT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
HLT ended the week 14.37% higher at 78.39 after gaining $0.73 (0.94%) today, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 78.39 marks the highest recorded closing price since April 29th. Trading up to $1.31 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. 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 (HLT as at May 22, 2020):
Friday's trading range has been $2.10 (2.69%), that's below the last trading month's daily average range of $3.11. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HLT. Prices continued to consolidate within a tight trading range between 75.83 and 78.86 where it has been caught now for the last three trading days.
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. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man.
Hilton Worldwide ran into sellers again today around 78.79 for the third trading day in a row after having found sellers at 78.86 in the prior session and at 78.32 two days ago. The last time this happened on April 16th, HLT actually gained 7.80% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 78.86 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 75.83 where further sell stops might get activated. Further buying could move prices higher should the market test April's nearby high at 81.74.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Hilton Worldwide. Out of 79 times, HLT closed higher 55.70% 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 68.35% with an average market move of 1.03%.