Stock of the day: Hilton

Hilton is currently trading inside of a big symmetric triangle pattern (black) that started a bit more than a year ago. The upper and lower lines of the triangle are approaching each other, and the price has less space for movement. Symmetric triangles always lead to a breakout that either is legitimate and will start a proper trend, or not. It usually does and that is the reason why symmetric triangles are such great patterns.

We are precisely in the middle of this formation at the moment and pointing out a future direction could be anybody’s guess. In this case, the best option is to wait patiently for the breakout. A breakout of the upper line will give us a signal to buy and a breakout of the lower line will give us a signal to sell.