Bulls taking over on Hertz?

Published on Friday, 29 June 2012 04:39 Written by TradersHuddle Wire

New York, June 29th (TradersHuddle.com) - Shares of Hertz Global Holdings, Inc. (NYSE:HTZ) ended the trading session lower by $0.06 or -0.49% from its previous close. Hertz's price action developed what can be considered a reversal pattern in the form of a tweezer bottom, which is a candlestick pattern that is usually formed at the end of a downtrend. The tweezer bottom is considered a reversal pattern, so traders will need to monitor the price action for confirmation.

Hertz Global Holdings, Inc. (NYSE:HTZ) operates car and equipment rental centers throughout the United States and around the world

Traders looking for an entry in Hertz can use the tweezers as a good reference point to establish the long position, as the pattern provides defined risk by giving a good reference point for support.

Traders look for tweezer bottoms, as they provide an entry with a small defined risk. They are a leading indicator that provide an alert for a trend reversal or stabilization. The tweezers imply that bears or sellers were not able to push the stock lower, therefore providing the opportunity to look for a bounce. Below an example of a Tweezer Bottom reversal pattern: