Avis Budget Group, Inc. (NASDAQ:CAR) shares are climbing rapidly during Thursday’s trading session. The move follows a period of intense volatility for the mobility giant. A massive short squeeze is the primary driver behind the sudden upward price action.
The Nasdaq is up 0.51% while the S&P 500 has gained 0.25%.
• Avis Budget Group stock is approaching key resistance levels. Why are CAR shares at highs?
Circuit Breakers Triggered Amid Rally
On Thursday, Avis Budget Group shares were halted after triggering an upside circuit breaker. At the time of the halt, the stock gained 7.49%. Trading later resumed as buyers continued to flood the tape.
Avis Budget Group provides mobility solutions through three core brands: Avis, Budget and Zipcar.
Short Interest Reaches Critical Levels
Short interest recently climbed from 8.12 million to 9.03 million shares. Data shows that 53.66% of the company’s publicly available shares are currently held short.
Based on the average daily volume of 1.24 million shares, shorts would need 7.27 days to exit their positions.
Technical Analysis
Avis Budget is sitting under its 52-week high of $448. The stock is trading 98.9% above its 20-day simple moving average (SMA) and 197.6% above its 100-day SMA.
The relative strength index (RSI), a momentum gauge, is 89.31, which points to overheated momentum and a higher risk of sharp pullbacks.
- Key Resistance: $415.50
- Key Support: $204
CAR Stock Price Activity: Avis Budget Group shares were up 7.43% at $425.19 at the time of publication on Thursday, according to Benzinga Pro data.
Photo: Ian Dewar Photography / Shutterstock.com
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