HTHT closes within previous day's range after lackluster session
Huazhu Group Limited (HTHT) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
HTHT finished the month -2.05% lower at 34.33 after losing $0.13 (-0.38%) today, strongly underperforming the S&P 500 (0.77%). 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 (HTHT as at Jul 31, 2020):
Friday's trading range has been $0.78 (2.26%), that's below the last trading month's daily average range of $1.37. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HTHT. Prices continued to consolidate within a tight trading range between 33.75 and 34.98 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns.
After spiking up to 34.60 during the day, the share found resistance at the 200-day moving average at 34.57. After having been unable to move lower than 33.75 in the previous session, the market found buyers again around the same price level today at 33.82. The last time this happened on July 21st, HTHT actually lost -3.81% on the following trading day.
Although Huazhu Group is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 34.98 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 33.75 where further sell stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 200" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Huazhu Group. Out of 24 times, HTHT closed higher 58.33% 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 58.33% with an average market move of 1.18%.