LaSalle Hotel Properties (NYSE: LHO)

LaSalle Hotel Properties, a real estate investment trust (REIT), engages in the purchase, ownership, redevelopment, and leasing of primarily upscale and luxury full-service hotels in convention, resort, and urban business markets in the United States. It owns 34 hotels, totaling approximately 9,200 guest rooms in 15 markets in 11 states and the District of Columbia. The company qualifies as a REIT under the Internal Revenue Code of 1986. As a REIT, it would not be subject to federal corporate income tax to the extent that it distributes at least 90% of its taxable income to its shareholders.

Please take a look at the 1-year chart of LHO (Lasalle Hotel Properies) below with my added notations:

1-year chart of LHO (Lasalle Hotel Properies)

LHO has come down to a very important price of $32 based on two different levels of potential support. First, the $32 level itself (red) has simply been key to the stock on multiple occasions already. In addition, LHO is approaching a short-term, up-trending level of support (blue) and that trendline is also sitting at the $32 level.

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The Tale of the Tape: LHO has a key area of support at $32. A long trade could be made at $32 with a stop placed below that level of entry. However, if the stock were to break below $32 traders might want to look to get short on the stock.

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

Follow me on Twitter: @cmtstockcoach