Wyndham Worldwide Corporation (NYSE: WYN)

Wyndham Worldwide Corporation provides various hospitality services and products to individual and business customers in the United States, the United Kingdom, the Netherlands, and internationally. The company operates in three segments: Lodging, Vacation Exchange and Rentals, and Vacation Ownership. The company offers its hospitality services and products under the Wyndham Hotels and Resorts, Ramada, Days Inn, Super 8, Howard Johnson, Wingate by Wyndham, Microtel Inns & Suites, Tryp by Wyndham, RCI, The Registry Collection, Landal GreenParks, Novasol, Hoseasons, cottages4you, James Villa Holidays, Wyndham Vacation Rentals, Wyndham Vacation Resorts, Shell Vacations Club, and WorldMark by Wyndham brand names. Wyndham Worldwide Corporation is headquartered in Parsippany, New Jersey.

To review Wyndham’s stock, 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)

Since the beginning of the year WYN has essentially been trading sideways while forming a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. WYN’s rectangle pattern has formed a $75 resistance (blue) and a $70 support (green). A break above $75 would also be a new 52-week high.

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The Tale of the Tape: WYN is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $70, or on a breakout above $75. The ideal short opportunity would be on a break below $70.

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