HTZ breaks below Thursday's low
Hertz Global Holdings Inc (HTZ) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HTZ ended the month 2.84% higher at 1.45 after losing $0.03 (-2.03%) today, strongly underperforming the S&P 500 (0.77%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 1.46, the stock confirmed its breakout through the previous session low after trading up to $0.01 below it intraday.
Daily Candlestick Chart (HTZ as at Jul 31, 2020):
Friday's trading range has been $0.06 (4.0%), that's below the last trading month's daily average range of $0.13. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HTZ.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 1.47 (now R1), which is likely to act as resistance going forward. The last time this happened on June 10th, HTZ lost -18.25% on the following trading day. After having been unable to move lower than 1.46 in the prior session, the market found buyers again around the same price level today at 1.45.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 1.58 where further buy stops could get triggered. As prices are trading close to July's low at 1.30, downside momentum might speed up should the share mark new lows for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Its common bearish interpretation has been confirmed for Hertz Global. Out of 343 times, HTZ closed lower 56.85% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 53.94% with an average market move of -0.92%.