Wyndham Worldwide Corporation (NYSE: WYN)

Wyndham Worldwide Corporation, together with its subsidiaries, provides various hospitality services and products to individual consumers and business customers in the United States and internationally. The company operates in three segments: Lodging, Vacation Exchange and Rentals, and Vacation Ownership. The Lodging segment franchises hotels in the upper upscale, upscale, upper midscale, midscale, economy, and extended stay markets, as well as provides hotel management services for full-service and select limited-service hotels. The Vacation Exchange and Rentals segment offers vacation exchange products and services to resort developers and owners of intervals of vacation ownership interests (VOIs); and markets vacation rental properties primarily on behalf of independent owners, timeshare developers, and other hospitality providers. The Vacation Ownership segment develops, markets, and sells VOIs to individual consumers; provides consumer financing in connection with the sale of VOIs and property management services at resorts; and offers day-to-day-management services, including oversight of housekeeping services, maintenance and accounting, and administrative services for property owners associations and clubs.

Please take a look at the 1-year chart of WYN (Wyndham Worldwide Corporation) below with my added notations:

1-year chart of WYN (Wyndham Worldwide Corporation)

From March through May WYN seemed to form a topping pattern and the stock eventually broke lower at the end of May. During that period of time, you will notice that the stock commonly reacted to the $60 price. That price has been resistance (red) on a couple of occasions already, and while topping it also acted as support (green). The stock is currently retesting that $60 level as resistance.

The Tale of the Tape: WYN tends to react to $60. A trader could enter a short position at $60 with a stop placed above that level. If the stock were to break back above that resistance a long position would be recommended instead.

Would you like assistance in making your TBS trades? If so, email me at Christian@yolopub.com and let’s talk about working together one on one!

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT