HST closes below its opening price unable to hold early session gains
Host Hotels & Resorts Inc. (HST) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
HST ended the month -9.63% lower at 10.79 after losing $0.17 (-1.55%) today on high volume, strongly underperforming the S&P 500 (1.54%). Trading $0.22 higher after the open, Host Hotels was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 5th, HST actually gained 5.78% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (HST as at Jun 30, 2020):
Tuesday's trading range has been $0.53 (4.83%), that's slightly below the last trading month's daily average range of $0.64. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HST. Prices continued to consolidate within a tight trading range between 10.49 and 11.19 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical support level at 10.51 (S1). After having been unable to move lower than 10.58 in the prior session, the stock found buyers again around the same price level today at 10.66.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 10.49 where further sell stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Host Hotels. Out of 387 times, HST closed higher 50.39% 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 five trading days, showing a win rate of 53.23% with an average market move of 0.13%.