HTZ runs into sellers around 1.39 for the third day in a row
Hertz Global Holdings Inc (HTZ) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
HTZ finished Wednesday at 1.33 flat, slightly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (HTZ as at Sep 16, 2020):
Wednesday's trading range has been $0.07 (5.26%), that's slightly below the last trading month's daily average range of $0.08. 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 slightly lower than usual for HTZ.
Four candlestick patterns are matching today's price action, the Southern Doji and the Tweezer Bottom which are both known as bullish patterns, one bearish pattern, the Gravestone Doji and one neutral pattern, the Doji. The last time a Doji showed up on August 27th, HTZ gained 4.14% on the following trading day.
The stock ran into sellers again today around 1.39 for the third trading day in a row after having found sellers at 1.38 in the previous session and at 1.39 two days ago.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 1.43.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to September's high at 1.50, upside momentum could accelerate should the share mark new highs for the month. Trading close to July's low at 1.30 we might see further downside momentum if potential sell stops at the level get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Bottom" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Hertz Global. Out of 21 times, HTZ closed lower 66.67% 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 66.67% with an average market move of 6.66%.