Hertz Global Holdings (HTZ) is due to report its quarterly numbers on Monday. The stock rallied sharply Thursday, perhaps on a fundamental upgrade of competitor Avis Budget (CAR) , so let's check out the charts and indicators to see if this move higher can be sustained.
In this daily bar chart of HTZ, below, we can see that buyers came in at least four times in the $14-$13 area to halt a decline and rally prices. Look at the reversals in June, July, October, and late December and early January. Each rally petered out after a few weeks but this current advance could be different. Prices are above the still declining 200-day moving average line and above the bottoming 50-day moving average line.
The daily On-Balance-Volume (OBV) line has moved up and down the past year with the price action but the turn higher from early January is steady and is close to breaking above the highs of August and November.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since late January and is in a bullish configuration.
In this two-year weekly bar chart of HTZ, below, we can see a possible large falling wedge pattern or, if your imagination is failing you, then a long downward sloping channel. Prices are at the top of the channel and we could see an upside breakout. HTZ is above the bottoming 40-week moving average line.
The weekly OBV line has been steady the past five months.
The weekly MACD oscillator is just below the zero line and shy of an outright go long signal.
In this Point and Figure chart of HTZ, below, we can see the price action without the volume and various indicators. Just pure price action.
The software is projecting an upside price target of $26.50 and that will break the downtrend and put the stock above the 2018 highs. A rally to $28 would be another important breakout trade.
Bottom line strategy: In the past two years rallies in HTZ have quickly reversed. This time looks different.