Stock of the day: Hilton

Today, we’re moving to the hospitality industry and welcoming Hilton to our ‘Stock of the Day’ series. It’s not the first time we talk about Hilton. We mentioned the company during the Covid pandemic in July last year. Back then the price was around 128 USD and we were bullish saying:

“Bringing all that together leaves no doubt, it gives us a very strong buy signal. Personally, from a technical point of view, I don’t see any bearish factors here, but as always on the financial markets, you can’t be totally sure of anything.”

How did that work out? Well, in the middle of February, the price reached a new high on the 160 USD. So, our analysis was pretty spot on I’d say.

What’s our view on Hilton now? Well, it’s changed a lot. Currently, we have a full sell signal.

The bearish sentiment comes from the fact that the price created a triple top formation (blue). We already broke this pattern’s support which, at the same time, is a long-term up trendline (black). And by the way, it’s not important how you draw this line, because the breakout point is almost in the same place.

The thing worth noticing is also the Fibonacci. We can see that 23,6 and 38,2 are in line with historical supports and resistance. This factor should make them stronger and more reliable.

Currently, the price is fighting on the 23,6% Fibo and in case of a breakout, we can potentially see a movement towards the 38,2%. The bearish sentiment cancels if the price comes back above the up trendline, but chances of that happening are now limited.