HTHT closes within previous day's range after lackluster session
Huazhu Group Limited (HTHT) Technical Analysis Report for Jan 15, 2020 | by Techniquant Editorial Team
Moving lower for the 9th day in a row, HTHT ended Wednesday at 38.04 edging lower $0.16 (-0.42%), underperforming the S&P 500 (0.19%). Today's close at 38.04 marks the lowest recorded closing price since December 18, 2019. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HTHT as at Jan 15, 2020):
Wednesday's trading range has been $0.74 (1.92%), that's below the last trading month's daily average range of $1.17. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HTHT.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 37.74 (S1). After having been unable to move above 38.49 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 38.51. The last time this happened on Monday, HTHT lost -2.03% on the following trading day.
Though the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the close-by swing low at 37.12 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "9 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Huazhu Group. Out of 3 times, HTHT closed higher 100.00% 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 nine trading days, showing a win rate of 33.33% with an average market move of 0.79%.