Is Avis Budget Going Places?
Avis Budget was one of the top “reopening” plays back in May and June, more than tripling from its lows to highs. It’s consolidated since, and now the chart may be lining up for another potential move to the upside.
CAR formed a bullish triangle between mid-June and early August. It broke out of that triangle last week but was over bought at the time. (See Distance from MA on chart.)
But now it’s pulled back to hold the top of its recent range. Old resistance seems to be turning into new support.
CAR also had a “golden cross” chart pattern on August 5 as the 50-day simple moving average (SMA) rose up and through the 200-day SMA.
The fundamentals are also potentially interesting after CAR beat estimates on July 28. It tried to rally at the time but MACD was falling and short-term sellers knocked it back down.
Traders may view roughly $30 as a risk-management area.
CAR formed a bullish triangle between mid-June and early August. It broke out of that triangle last week but was over bought at the time. (See Distance from MA on chart.)
But now it’s pulled back to hold the top of its recent range. Old resistance seems to be turning into new support.
CAR also had a “golden cross” chart pattern on August 5 as the 50-day simple moving average (SMA) rose up and through the 200-day SMA.
The fundamentals are also potentially interesting after CAR beat estimates on July 28. It tried to rally at the time but MACD was falling and short-term sellers knocked it back down.
Traders may view roughly $30 as a risk-management area.
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