Ryman Hospitality Properties Inc (NYSE: RHP)

Ryman Hospitality Properties, Inc. owns and operates hotels in the United States. Its Hospitality segment operates a network of meetings-focused resorts. The company’s Opry and Attractions segment owns and operates Nashville-based tourist attractions, including the Grand Ole Opry, a live country music show; the Ryman Auditorium, a venue with approximately 2,300 seats for concerts and musical productions; the General Jackson Showboat, a 300-foot, four-deck paddle wheel showboat on the Cumberland river; the Gaylord Springs Golf Links, a clubhouse, which provides meeting space for approximately 500 guests; and the Wildhorse Saloon, a country music performance venue. This segment also operates WSM-AM, a radio broadcasting station. Ryman Hospitality Properties, Inc. qualifies as a real estate investment trust for federal income tax purposes.

Take a look at the 1-year chart of Ryman (NYSE: RHP) with my added notations:

1-year chart of Ryman (NYSE: RHP)

RHP has been trading in a sideways range for the last 3 months. During that period of time the stock has formed a resistance around $50 (blue). In addition, the stock has also created a clear level of support near $46 (green). At some point the stock will have to break one of the two levels created by RHP’s trading range.

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The Tale of the Tape: RHP has a level of support at $46 and a resistance at $50. The possible long positions on the stock would be either on a pullback to $46, or on a breakout above $50. The ideal short opportunity would be on a break below $46.

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