Stock of the day: Hilton

The stock we’ll be focusing on for this week’s talk of the day is Hilton, a company that has been adhering to a technically driven movement recently. Specifically, Hilton’s stock is undergoing a correction phase which initiated last week. Friday concluded with a significant dip, a trend mirrored in Hilton’s chart.

Upon examining the chart, we find that Hilton has been trading within a symmetric triangle pattern since April 2022, represented by the upper black line and the lower red line. Furthermore, Hilton’s price movement since June 2022 has been characterized by a flag pattern, depicted by the red lines.

The recent downward trend which kicked off in June began with a test of the upper boundary of the triangle. Currently, the price is testing the lower line of the triangle. A breakout from this triangle seems to be on the horizon.

So, how can traders strategize in this situation? If the price closes today below the lower red line, it will serve as a strong signal for a potential short position in the midterm to long term. Conversely, a price movement breaking above the black line (the upper line of the triangle) would constitute a robust signal to go long, with the potential target being the upper line of the flag.

However, with the prevailing sentiment, the odds appear to favor a breakout to the downside. As always, it’s essential for traders to monitor these patterns closely and take cues from the market dynamics to make informed decisions.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-hilton-1