Finally, the trendline has been violated after an Evening Star Pattern formed on the daily chart.
We can clearly see that this stock has been on a strong uptrend since the pandemic, and has almost doubled from the pre-pandemic high ($52.90). Meanwhile, AVIS BUDGET has not been fully operational, sold a big chunk of its fleet and increased its debt significantly.
Few things to consider the short position: - Fundamentally overvalued - Bearish pattern formed on the daily chart - Trendline violated - MACD / Price divergence - +DI crossing -DI on 20/04/21 - Volume has been drying-up for the past 1/2 weeks. ( Be careful with illiquid stocks! ) - DMI showing trend weakening
My position is this: Short @ $78.17 SL @ $80.02 TP @ $64.49