HST declines to lowest close since April 13th
Host Hotels & Resorts (HST) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, HST finished the week -4.58% lower at 19.18 after edging lower $0.06 (-0.31%) today, strongly underperforming the S&P 500 (1.42%). Today's close at 19.18 marks the lowest recorded closing price since April 13th. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (HST as at Oct 12, 2018):
Friday's trading range has been $0.50 (2.58%), that's above the last trading month's daily average range of $0.37. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for HST.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 20.67.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Host Hotels. Out of 58 times, HST closed higher 56.90% 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 48.28% with an average market move of 0.23%.