Bull Signal Flashing Amid Hotel Stock Pullback
Hotel chain Hilton Hotels Corporation (NYSE:HLT) is trading at $305.89, briefly breaching $300 and roughly 8% off its Feb. 12 all-time peak of $333.86. More recovery could be in store, though, after HLT tested a historically bullish trendline.
Per Schaeffer's Senior Quantitative Analyst Rocky White, HLT is now within 0.75 of the 80-day moving average's 20-day average true range (ATR), after remaining below it 80% of the time in the last two weeks and in 80% of the last 42 trading sessions.
This signal has occurred a whopping 17 times in the past 10 years, after which the HLT was higher one month later 76% of the time, averaging a gain of 3.4%. From its current perch, a move of similar magnitude would fill the one-week drawdown of 2.4%.
There is upgrade potential surrounding the stock as well. Heading into today, 11 of the 24 in coverage sport a tepid "hold" rating.
Short-term traders have been eyeing puts of late, per the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.32, which ranks in the 92nd percentile of its annual range. Should this bearish sentiment begin to unwind, HLT could stay in long-term uptrend.
Options are looking affordable for those looking to bet on HLT's next move. This is per the stock's Schaeffer's Volatility Index (SVI) of 31% that stands higher than 21% of all other readings from the past year, implying near-term option traders are pricing in relatively low volatility expectations.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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