HST is testing a historically bullish trendline
Real estate investment trust (REIT) Host Hostels and Resorts Inc (NASDAQ:HST) is up 4.4% at $16.03 at last glance, after Wells Fargo lifted its price target to $18 from $16, maintaining its "overweight" rating. Plus, the 50-day moving average just moved in as support, which has preceded bullish activity in the past.
Per Schaeffer's Senior Quantitative Analyst Rocky White, the REIT is within 0.75 of its 50-day moving average's 20-day average true range (ATR) after spending at least 8 of the last 10 days and 80% of the last two months above it. Within these parameters, six other signals occurred in the past three years. HST was higher one month later 100% of the time after those instances, averaging a 3.7% gain.
The security is also nearing "oversold" territory, per its 14-day relative strength index (RSI) of 34.4. This could be indicative of a short-term bounce.
Though short interest has been unwinding while the firm bounces off its early-April lows, it still represents 5.3% of the equity's available float. It would take shorts over three days to cover their bets, at HST's average pace of trading.
When weighing in, options look like a good way to go. HST's Schaeffer's Volatility Index (SVI) of 25% ranks in the 14th percentile of its annual range, meaning options traders are pricing in low volatility expectations.