AVIS: LOOKING FOR NEAR TERM SUPPORT AFTER DELIVERING A FURTHER 37.50% MATASII SHORT GAINS
Business Summary (yahoo Finance)
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 operates through two segments, Americas and International. It operates the Avis brand car rental system with approximately 5,550 locations that supply rental cars to the premium commercial and leisure segments of the travel industry; the Budget brand vehicle rental system with approximately 4,050 car rental locations, which serve the value-conscious segments of the industry; and the Zipcar brand, a membership-based car sharing network that provides vehicles to approximately 1 million members. The company also operates the Payless brand, which comprises approximately 240 vehicle rental locations; the Apex brand primarily in the deep-value segment of the car rental industry with approximately 25 rental locations in New Zealand and Australia; and the Maggiore brand that provides vehicle rental services in the commercial, leisure, and insurance replacement/leasing segments with approximately 130 rental locations in Italy, as well as the France Cars brand, which offers light commercial vehicle fleets with approximately 60 rental locations in France. In addition, it is involved in the local and one-way truck rental businesses with a fleet of approximately 22,000 vehicles, which are rented through a network of approximately 1,000 dealers and 480 company-operated locations that serve the consumer and light commercial sectors in the continental United States. Further, it offers optional insurance products and coverages, such as supplemental liability, personal accident, personal effects protection, emergency sickness protection, automobile towing protection, and cargo insurance products. The company was formerly known as Cendant Corporation and changed its name to Avis Budget Group, Inc. in September 2006. Avis Budget Group, Inc. was founded in 1946 and is headquartered in Parsippany, New Jersey.
INITIAL CAR CarMax IDEA: April 3rd, 2018
The weekly chart (left) shows an expanding wedge pattern for the lift from the lows mid 2017. Also note the structure from the 2016 lows, it too is an expanding wedge; with the highs from 2016 connecting with the recent highs this year. These are currently the two main patterns/structures to watch: their bounding technicals are significant and offer potential opportunities when broken or bounced from. Orange highlights the top resistance of the larger wedge from 2016, as well as the bottom support of the wedge from the 2017 lows.
The daily chart (right) gives a closer look at the markets actions this year bouncing between the highlighted technicals. The top of the wedge from 2016 and the bottom of the wedge from 2017 together form a contracting wedge that can be watched for breaks or bounces. Inside this the market can be seen to have recently found support at a Fibonacci level - an orange dashed highlight offers potential shorter term, riskier opportunities if broken or bounced from again. Riskier for longer term moves as the larger overall patterns could still hold and turn the market back the other way.
Above the market a level of $51.50 has been indicated, below the market a level of $40.00. Note that the actual trigger consideration $ are the sloped highlighted technicals that bound the larger patterns. Once broken we can consider a continuation of the trend / wedge from 2017 and more potential lift, or a potentially large drop as the next wave down of the wedge from 2016 continues.