Tuesday’s market action was pure chaos.
Dow down 600 points at the open on China shipping sanctions. Then Trump tweets, “Don’t worry about China, it will all be fine” and we rally 900 points off the lows. Classic whipsaw that left most traders dizzy.
But while everyone was glued to trade war headlines, I spotted something clean setting up: Hilton (HLT) just printed a fresh daily squeeze with perfect technical alignment.
The Setup That Matters
HLT closed Tuesday with a brand new daily squeeze signal.
That’s volatility contracting after weeks of sideways movement, building pressure for the next big move.
Here’s what gets me excited: the daily EMAs are stacked bullish. The 20-day sits above the 50-day, which sits above the 100-day, which sits above the 200-day. Picture a stack of pancakes tilted upward – every timeframe shows an uptrend.
That’s institutional money staying put while retail panics about macro headlines.
HLT has built a solid foundation of $255 over the past month. Multiple tests, multiple holds. When a stock finds its floor this convincingly, it’s telling you something about where smart money sees value.
And here’s the kicker: we’re just 5% off 52-week highs while the broader market’s been chopping around trade war fears.
That’s relative strength. While other stocks get hammered on China headlines, HLT barely budges. Hotels don’t ship manufacturing jobs to Beijing.
Why This Makes Sense
Think about it: domestic travel demand isn’t going anywhere because of tariff threats. Business conferences still happen. Vacations still get booked. Wedding seasons don’t pause for trade negotiations.
HLT’s revenue comes from travelers who book rooms in Chicago, not supply chains running through Shanghai.
Plus, we’re heading into holiday travel season. Q4 earnings season just started strong with banks beating expectations. When corporate profits look good, business travel picks up.
Fresh daily squeeze + stacked bullish EMAs + strong base support = textbook breakout setup.
The volatility compression is obvious on the daily chart. After weeks of sideways grinding, HLT’s ready to make its next move. With EMAs providing support below and limited resistance above current levels, the path of least resistance points higher.
Your Action Plan
Any pullback toward that $255 base should hold. If it doesn’t, the setup’s broken.
But with relative strength this clear and technicals this aligned? This could be one of those setups that quietly moves 10-15% while everyone else debates China policy.
Sometimes the best opportunities hide behind the biggest headlines. While traders panic about trade wars, domestic plays like HLT just keep building their bases.
The squeeze is fresh. The trend is intact. The setup’s clean.
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