Avis Budget Group, Inc., together with its subsidiaries, provides car
and truck rentals, car sharing, and ancillary services to businesses
and consumers worldwide. The company has three segments: North America,
International, and Truck Rental. It operates the Avis car rental system
with approximately 5,450 locations, that supply rental cars to the
premium commercial and leisure segments of the travel industry; the
Budget vehicle rental system with approximately 3,500 car rental
locations, which serve the value-conscious segments of the industry; and
Zipcar, a membership-based car sharing network that provides vehicles
to approximately 915,000 members.
Take a look at the 1-year chart of Avis (NASDAQ: CAR) with the added notations:
CAR has been trading mostly sideways on top of a clear $40 support
(green) during the most recent 4 months. Now that the stock appears to
be testing that support level again, traders should be able to expect
some sort of bounce. However, the stock’s recent dive is a bit
concerning. If the $40 support were to break, lower prices should
follow.
The Tale of the Tape: CAR has a key level of support
at $40. A trader could enter a long position at $40 with a stop placed
under the level. If the stock were to break below the support a short
position could be entered instead.
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