HST breaks below Thursday's low
Host Hotels & Resorts Inc. (HST) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, HST ended the week 11.63% higher at 11.23 after losing $0.20 (-1.75%) today, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 11.33, the stock confirmed its breakout through the prior session low after trading up to $0.39 below it intraday.
Daily Candlestick Chart (HST as at May 22, 2020):
Friday's trading range has been $0.62 (5.42%), that's slightly below the last trading month's daily average range of $0.64. 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 HST.
Regardless of a strong opening Host Hotels closed below the previous day's open and close, forming a bearish Engulfing Candle.
After trading as low as 10.94 during the day, the share found support at the 20-day moving average at 11.07. The last time this happened on April 15th, HST actually lost -2.40% on the following trading day. Prices broke below the key technical support level at 11.42 (now R1), which is likely to act as resistance going forward.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 12.00 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Host Hotels. Out of 87 times, HST closed higher 50.57% 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 58.62% with an average market move of 0.65%.