The automobile rental business has had bumpy ride over the past 52 weeks. Shares of Hertz Global Holdings, Inc. (HTZ) traded as high as $22.70 on May 2, 2018, to a low of $13.01 on Oct. 24. Within this range, the stock has been above $20 per share several times between June 20 and Nov. 29 and below $14 several times between July 13 and Jan. 7. This appears to be a stock that can be traded profitably given this volatile trading range.

Despite this volatility, Hertz stock closed last week at $18.77, up 37.5% so far in 2019 and in bull market territory at 44.3% above its Oct. 24 low of $13.01. The stock is also in correction territory at 17.3% below its May 2 high of $22.70.

Hertz operates airport services and offers truck rentals as well as fleet leasing management services. Analysts expect the car rental company to report a loss of 90 cents per share on revenue of $2.15 billion when it releases results after the closing bell on Monday, Feb. 25. Over the past two years, Hertz has beaten earnings per share estimates 38% of the time and exceeded revenue expectations 50% of the time, so let's flip a coin!

The daily chart for Hertz

Daily technical chart showing the share price performance of Hertz Global Holdings, Inc. (HTZ)
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The daily chart shows that Hertz stock has been below a "death cross" since April 11, 2018. This was confirmed when the 50-day simple moving average fell below the 200-day simple moving average, indicating that lower prices lay ahead. This tracked the stock to its Oct. 24 low of $13.01.

The close on Dec. 31 at $13.65 resulted in a quarterly value level of $12.29, which is below the chart, and semiannual and annual risky levels at $38.88 and $42.70, respectively, which are above the chart. The Jan. 31 close of $16.59 resulted in a monthly pivot at $16.87 for February. My weekly pivot at $19.32 should be a magnet this week.

The weekly chart for Hertz

Weekly technical chart showing the share price performance of Hertz Global Holdings, Inc. (HTZ)
MetaStock Xenith

The weekly chart for Hertz is positive, with the stock above its five-week modified moving average of $17.34. The stock is well below its 200-week simple moving average, or "reversion to the mean," at $32.60, last tested during the week of June 26, 2015, when the average was $81.07. The 12 x 3 x 3 weekly slow stochastic reading rose to 44.71 last week, up from 38.40 on Feb. 15. 

Trading Strategy: Buy Hertz shares on weakness to my monthly value level at $16.87 and reduce holdings on strength to the 200-week simple moving average at $32.60. My weekly pivot is $19.32.

Disclosure: The author has no positions in any stocks mentioned and no plans to initiate any positions within the next 72 hours.