In today’s analysis, let’s focus on Hilton, which has been moving sideways since the end of June, creating a clear rectangle pattern marked with red lines. This kind of price behavior usually indicates a period of consolidation, where neither buyers nor sellers have enough strength to push the price decisively in one direction. For several months now, the price has been oscillating between two horizontal boundaries, forming well-defined support and resistance levels.
Most recently, Hilton bounced off the upper boundary of the rectangle, rejecting a potential breakout attempt to the upside. Since then, the price has drifted lower and is now trading right in the middle of the range. This area, often referred to as the “no-trade zone,” is indeed the worst place to open new positions, as it lacks clear directional bias and offers an unfavorable risk-to-reward ratio. At this point, traders are better off staying patient and waiting for a decisive breakout before committing to any position.
From a technical perspective, the trading plan is simple. A breakout above the upper red line of the rectangle would trigger a buy signal, suggesting that the period of consolidation is over and that buyers have regained control. Conversely, a breakout below the lower boundary of the rectangle would activate a sell signal, opening the door for a new bearish wave. Until one of these scenarios unfolds, Hilton remains locked inside the range, with traders watching closely for the first sign of a breakout.